“The amendment will, among other things, suspend Live Nation’s net leverage covenant under its existing senior secured credit agreement for the second and third quarters of 2020. Commencing with the fourth quarter of 2020, through the second quarter of 2021, the net leverage covenant will be calculated by substituting consolidated EBITDA, as defined in the credit agreement, from the second and third quarters of 2020 with consolidated EBITDA from the second and third quarters of 2019. As a result, this amendment will eliminate the use of consolidated EBITDA from the second and third quarters of 2020 in any net leverage covenant test, allowing the company the flexibility to manage its business through the disruption it will experience in 2020.”

– LIVE NATION ANNOUNCES CREDIT AGREEMENT AMENDMENT, ADDITIONAL REVOLVING CREDIT FACILITY AND COST REDUCTION PROGRAM

While this post meets the CSC blog hurdles of interesting, practical, non-consensual and snarky, it highlights a huge point today: unlike parts of the US government, banks do NOT want to own large swathes of corporate America via the breaking of covenants.

If you are not “unduly Blackstone-like levered,” and have something approximating a business that has some conceptual business model staying power, and you are not in real estate, retail or energy, you will have a kindred spirit on the other side of the debt table. It’s not ideal, but inhabitants of this planet have a long history of the mental inclination to can-kick.

– JB