Madison Square Garden Announces Pricing Of Secondary Offering Of 5.25 Mln Shares At $31.00/shr

(RTTNews) - Madison Square Garden Entertainment Corp. (MSGE) announced the pricing of underwritten secondary offering by Sphere Entertainment Group, LLC of 5.25 million shares of MSG Entertainment's Class A common stock at a public offering price of $31.00 per share.

The shares are expected to be delivered on or about June 27, 2023.

The Selling Stockholder has granted the underwriters a 30-day option to purchase up to an additional 787,500 shares of MSG Entertainment's Class A common stock at the public offering price, less underwriting discounts and commissions.

In addition, under MSG Entertainment's existing $250 million share repurchase authorization, MSG Entertainment intends to repurchase 840,053 shares directly from the Selling Stockholder, at a price of $29.76 per share, which is equal to the price at which the underwriters will purchase the shares from the Selling Stockholder, for an aggregate amount of about $25 million, concurrently with the closing of the offering.

The Selling Stockholder will receive all of the net proceeds from the offering. MSG Entertainment is not selling any shares of its Class A common stock in the offering and will not receive any proceeds from the sale of shares by the Selling Stockholder in the offering.

Upon completion of the offering and share repurchase, assuming the underwriters' option to purchase additional shares is not exercised, the Selling Stockholder will beneficially own 24.7% of MSG Entertainment's Class A common stock.