Sony/ATV plans $1.125 billion credit facility for EMI Music purchase

By Sara Rosenberg

New York, Nov. 14 - Sony/ATV Music Publishing has received a commitment for a $1.125 billion senior secured credit facility to help fund the purchase of EMI Music Publishing, according to a market source.

UBS Securities LLC is the lead bank on the deal.

The facility consists of a $1.05 billion term loan and a $75 million revolver, the source said.

The credit facility is actually being obtained by an entity that is being formed to execute the acquisition.

Under the agreement, Sony/ATV, a subsidiary of Sony Corp. of America that is co-owned by trusts formed by the Estate of Michael Jackson, along with an investor group that includes Mubadala Development Co. PJSC, Jynwel Capital Ltd., GSO Capital Partners LP and David Geffen is buying EMI Music for total consideration of $2.2 billion from a wholly owned subsidiary of Citigroup Inc.

With the transaction, Sony Corp. of America will invest about $325 million and, in conjunction with the Estate of Michael Jackson, own approximately 38% of the newly formed entity, with an ability to increase the investment and ownership up to 40%.

The debt being obtained will be non-recourse to Sony Corp. of America.

Closing is subject to certain conditions, including regulatory approvals.

Sony/ATV is a New York-based owner and administrator of copyrights by artists. EMI Music Publishing is a music publisher.

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