Sphere Entertainment Co. (SPHR) has disclosed a new risk, in the Debt & Financing category.
Sphere Entertainment Co. faces a significant financial risk due to the conditional conversion feature of its 3.50% Convertible Senior Notes. If conversion is triggered and note holders opt for cash settlement, Sphere’s liquidity could be severely impacted. Furthermore, the potential reclassification of this debt from long-term to current liability could substantially diminish the company’s net working capital, presenting a stark challenge to its operating results and financial stability.
Overall, Wall Street has a Hold consensus rating on SPHR stock based on 1 Hold.
To learn more about Sphere Entertainment Co.’s risk factors, click here.
