Madison Square Garden Entertainment Corp.’s stock
MSGE,
fell 5.3% premarket Monday, after the company said selling shareholder Sphere Entertainment Group LLC has launched a secondary offering of 7.2 million shares. Sphere intends to grand underwriters BofA Securities, Goldman Sachs and JPMorgan a 30-day option to purchase up to an additional 1.07 million shares. Madison Square Garden Entertainment said it will repurchase shares from the underwriters equal to about $50 million as part of its current share buyback authorization. It will fund the buyback with borrowings under its revolving credit facility, which has been amended to $150 million from $100 million. Once the buyback has closed, the company expects to have about $67 million remaining.
