Warner Music lifts term loan size to over $1 billion, firms discount

By Sara Rosenberg

New York, Oct. 20 – Warner Music Group upsized its covenant-light first-lien term loan due November 2023 (Ba3/B) to $1,006,000,000 from $978.5 million and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, pricing on the term loan is Libor plus 275 basis points with a 1% Libor floor, and the debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

Proceeds will be used to refinance existing debt. The $27.5 million in additional debt being raised through the upsizing will be used to redeem a portion of the company’s 5.625% senior secured notes due 2022, the source added.

Warner Music is a New York-based music company.

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