Warner Music Group reduces first-lien term loan amount to $600 million

By Sara Rosenberg

New York, Oct. 24 - Warner Music Group Corp. (WMG Acquisition Corp.) downsized its six-year first-lien covenant-light term loan to $600 million from $630 million, according to a market source.

Price talk on the term loan is Libor plus 475 basis points to 500 bps with a 1.25% Libor floor and an original issue discount of 99. The loan has 101 soft call protection for one year.

Amortization on the term loan is 5% per annum, the source said.

The company's now $750 million credit facility (Ba2/BB-), down from $780 million, also provides for a $150 million revolver.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, Barclays, Macquarie and Nomura are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

The company is also getting a $727 million equivalent of senior secured notes that were upsized from $635 million.

The additional total debt raised between the term loan downsizing and the bond upsizing totals about $60 million. That debt will be used to reduce the amount of cash used for the refinancing, the source said.

Warner Music is a New York-based music content company.

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