SFX Entertainment Receives A Whopping $90 Million In New Funding
After months of troubling concerns surrounding the SFX Entertainment financial state and the announcement earlier this week that founder and CEO Robert Sillerman is now the subject of a class action suit, word has surfaced that SFX has now acquired an additional $90 million in funding.
The new figure comes from a mix of new and old investors, as the company secures $60 million in new funding while restructuring its $30 million revolving credit facility. In a comment, Sillerman explained the company's goals as it pertains to the influx of new money.
“This round of financing from these sophisticated investors reflects a level of confidence and provides growth capital to support many of the exciting new initiatives SFX is undertaking. While the Company continues to explore strategic alternatives, this solidifies SFX for the short and long term, so we can focus on producing great festivals and events and operating globally recognized digital properties."
Richard Rosenstein, CFO for the company made a statement as well.
“Together, these transactions immediately improve our financial position by providing us with additional operating and working capital. We value these investors’ confidence in our business and equally appreciate the commitment made by GoldenTree through the assumption of our revolving credit facility. With the success of many of our festivals in the current quarter and this added financial flexibility, SFX is better positioned to continue growing our powerful brands and support our extraordinary team members who are focused on executing on our strategic plans. This also eliminates all operating distractions as we explore proposals from interested strategic partners.”
The news of new funding comes as a rare glimmer of hope for SFX Entertainment after months of speculation surrounding its economic downturn.