Warner Music’s WMG unit to price $550 million 10.5-year secured notes in Thursday drive-by

By Paul A. Harris

Portland, Ore., Aug. 6 – Warner Music Group's WMG Acquisition Corp. entity plans to price a $550 million offering of 10.5-year senior secured notes in a Thursday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S deal coming to yield in the low-to-mid 3% area, a bond trader said.

Credit Suisse Securities (USA) LLC is the left lead bookrunner.

The notes become callable after 5.5 years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The New York-based entertainment company plans to use the proceeds to pay down term loans under its senior term loan facility with the remainder, if any, for general corporate purposes.

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