SFX Entertainment has been in the news for all the wrong reasons lately. Aside from the rebound success that was Electric Zoo: Transformed, and the upcoming flagship TomorrowWorld festival, there hasn’t been much good news.

That bad streak ended yesterday when SFX was able to secure $90 million in emergency additional funding. According to the breakdown from Business Wire, $60 million comes from private placement financing and “$30 million in a revolving credit facility.” Of the $60 million, $30 million is actually coming from Robert Sillerman himself, or at least his companies.

The sale of $30 million in Junior Preferred Stock to Sillerman Investment Partners III LLC, an entity controlled by Sillerman. This is comprised of a completed purchase of $15 million of the Junior Preferred Stock and a fully-committed obligation by Sillerman Investment Partners to purchase an additional $15 million over the next 30 days.

At best, this is floater money, enough to keep the business running until the next injection is needed. As such, the SFX Entertainment is still accepting “proposals for the entire company, as well as assets not central to its core business, with a deadline of October 2, 2015.”

An official statement from Sillerman on the matter reads,

“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,” said Robert F.X. Sillerman, the Company’s Chairman and Chief Executive Officer. “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.”


Source: Business Wire