Warner Music Group $1.25 billion credit facility to launch March 22

By Sara Rosenberg

New York, March 11 - Warner Music Group is expected to hold a bank meeting on March 22 for its proposed $1.25 billion credit facility, according to a market source. Bank of America, Deutsche Bank, Lehman Brothers and Merrill Lynch are the lead banks on the deal.

The facility consists of a $1 billion term loan B and a $250 million revolver, the source said.

Price talk is not yet available on the tranches.

Previously, it was anticipated that the deal would be March business and that it would contain a $1 billion plus institutional term loan B and a revolver tranche, however, specifics on the launch and the tranches did not emerge until Thursday.

Expected ratings on the credit facility are B1 from Moody's Investors Service and B+ from Standard & Poor's, the source added.

Proceeds will be used to support the already completed acquisition of Warner Music by an investor group led by Thomas H. Lee Partners, Edgar Bronfman Jr.'s Lexa Partners, Bain Capital and Providence Equity Partners. Under the acquisition agreement, the investor group bought the music company from Time Warner Inc. for about $2.6 billion in cash.

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