Warner Music seeks amendment to use of proceeds loan provision

By Sara Rosenberg

New York, March 11 - Warner Music Group Inc. plans to amend its senior secured credit facility in connection with the initial public offering of its common stock to allow for proceeds from the IPO to be used in a certain way and to provide more flexibility under some restrictive covenants, according to an S-1 filed with the Securities and Exchange Commission.

The company plans to use proceeds from the IPO to repay some of its subsidiaries' debt and for general corporate purposes, the filing said.

Under the current credit agreement terms, the company must use 50% of the net proceeds of issuances of equity to repay term loan debt. This is the provision the company hopes to amend.

Warner Music is a New York-based music company.

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