By Paul A. Harris
Portland, Ore., Nov. 17 – WMG Acquisition Corp. priced a $540 million issue of 3¾% eight-year senior secured notes (Ba3/BB+) at 99.145 to yield 3 7/8% in a Wednesday drive-by, according to market sources.
The yield printed at the wide end of yield talk in the 3¾% area but in line with initial guidance in the high-3% area.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC.
The issuing entity is a wholly owned subsidiary of New York-based Warner Music Group Corp., an entertainment conglomerate, which plans to use proceeds from the notes for potential acquisitions of certain music and music-related assets, or for general corporate purposes.
Issuer: | WMG Acquisition Corp.
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Amount: | $540 million
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Maturity: | Dec. 1, 2029
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Securities: | Senior secured notes
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Left bookrunner: | Credit Suisse Securities (USA) LLC
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Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC
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Coupon: | 3¾%
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Price: | 99.145
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Yield: | 3 7/8%
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Spread: | 238 bps
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First call: | Dec. 1, 2024 at 101.875
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Special call: | 10% of notes annually at 103 during non-call period
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Trade date: | Nov. 17
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Settlement date: | Nov. 24
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Ratings: | Moody's: Ba3
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| S&P: BB+
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Distribution: | Rule 144A and Regulation S
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Price talk: | 3¾% area
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Marketing: | Drive-by
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