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WMG begins separate cash tender offers for two series of 9½% notes
By Susanna Moon
Chicago, Oct. 17 - WMG Acquisition Corp., a wholly owned subsidiary of Warner Music Group Corp., began separate cash tender offers to purchase its $1.1 billion outstanding 9½% senior secured notes due 2016 and $150 million outstanding 9½% senior secured notes due 2016.
Along with each tender offer, the company is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default.
The total purchase price will be $1,071.96 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 30, consent date, which includes a $30.00 premium per $1,000 of notes.
The offer will end at midnight ET on Nov. 14.
Those who tender after the consent deadline will receive $1,101.96 per $1,000 of notes.
Holders also will receive accrued interest up to but excluding the payment date, which is expected to be Nov. 1 for early tendered notes.
The tender offer is conditioned on receiving consents from at least a majority of the outstanding notes and completion of debt financing.
The company is set to hold a bank meeting at 11 a.m. ET on Oct. 17 to launch a $630 million six-year first-lien covenant-light term loan, as reported by Prospect News.
The company plans to call for redemption all of the notes that remain outstanding after completion of the debt financing, according to a press release.
Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-1862) is the dealer manager and solicitation agent for the offers. D.F. King & Co., Inc. (800 714-3312, collect 212 269-5550 or email wmg@dfking.com) is the information agent.
Warner Music is a New York-based music content company.
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