Warner Music downsizes dollar-denominated tranche to $465 million

By Paul A. Harris and Sara Rosenberg

St. Louis, March 29 - Warner Music Group decreased its U.S. 10-year bond deal (B-), which is non-callable for five years, to $465 million from $615 million in response to the decision to increase its term loan B to $1.2 billion from $1 billion on strong loan demand, market sources said.

Pricing is expected on April 1 or 2.

More than $2 billion in commitments flowed into the bank book, the sources added.

The £100 million tranche contained in the high-yield offering was left unchanged.

Deutsche Bank Securities, Banc of America Securities, Lehman Brothers, and Merrill Lynch & Co. are bookrunners on the Rule 144A/Regulation S offering.

Proceeds will be used to help fund acquisition of Warner Music Group from Time Warner by Thomas H. Lee Partners, Edgar Bronfman's Music Capital Partners, Bain Capital, and Providence Equity Partners.

The issuer is a global music company with headquarters in New York City.

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