By Paul A. Harris
Portland, Ore., March 26 - Warner Music Group priced $935 million of eight-year notes in two tranches on Wednesday, according to a syndicate source.
The quick-to-market deal included a $275 million tranche of senior secured notes that priced at par to yield 5 5/8%, at the tight end of yield talk in the 5¾% area.
The company also priced a $660 million tranche of senior unsecured notes at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk.
Credit Suisse Securities (USA) LLC, Barclays, UBS Investment Bank, Macquarie Capital and Nomura were the joint bookrunners.
The New York-based music content company plans to use the proceeds to refinance its existing senior unsecured notes.
| Issuer: | WMG Acquisition Corp.
|
| Amount: | $935 million
|
| Maturity: | April 15, 2022
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, UBS Investment Bank, Macquarie Capital, Nomura
|
| Trade date: | March 26
|
| Settlement date: | April 9
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Amount: | $275 million
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 314 bps
|
| Price talk: | 5¾% area
|
| First call: | April 15, 2017 at 104.219
|
|
|
| Senior unsecured notes
|
| Amount: | $660 million
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 426 bps
|
| Price talk: | 6¾% to 7%
|
| First call: | April 15, 2017 at 105.063
|
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