Company Completes $650 Million Debt Financing Further Strengthening Liquidity Position
NEW YORK, N.Y., November 16, 2020 – Madison Square Garden Entertainment Corp. (NYSE: MSGE) (“MSG Entertainment”) today reported financial results for the fiscal first quarter ended September 30, 2020.
As a result of the COVID-19 pandemic, the Company’s performance venues and Tao Group Hospitality’s entertainment dining and nightlife venues were closed in mid-March and, except for certain Tao Group Hospitality venues, remained closed during the fiscal 2021 first quarter, materially impacting the Company’s financial results. For the fiscal 2021 first quarter, the Company reported revenues of $14.4 million, a decrease of 92% as compared with the prior year quarter.(1)(2) In addition, the Company had an operating loss of $126.6 million and an adjusted operating loss of $67.7 million, compared to an operating loss of $68.1 million and an adjusted operating loss of $30.1 million in the prior year quarter.(3)(4)
The Company recently completed a $650 million debt financing in the form of a five-year senior secured term loan, significantly strengthening the Company’s liquidity position. In addition, Madison Square Garden Sports Corp. (“MSG Sports”) recently terminated its $200 million delayed draw term loans with MSG Entertainment, which removed a potential near-term obligation for the Company.
Executive Chairman and CEO James L. Dolan said, “Our business continues to be impacted by COVID-19; however, we remain confident that our Company is well-positioned to navigate these unprecedented times. Our focus is on preserving our strong balance sheet and protecting our core entertainment business, while we also make important progress on MSG Sphere. We remain encouraged by the continued engagement from artists and fans, and expect our business to return quickly when we are able to safely re-open our venues.”