By Paul A. Harris
Portland, Ore., Oct. 13 – Warner Music Group Corp. priced two tranches of eight-year senior secured notes (Ba3/B) on Thursday, according to a syndicate source.
A euro-denominated tranche was sized at €345 million. It priced at par to yield 4 1/8%. The yield printed at the tight end of yield talk in the 4¼% area.
A dollar-denominated tranche was sized at $250 million. It priced at par to yield 4 7/8%, on top of yield talk.
Credit Suisse was the lead left bookrunner. Barclays, UBS, Macquarie and Nomura were joint bookrunners.
The issuing entity is wholly owned subsidiary WMG Acquisition Corp.
The New York-based music company plans to use the proceeds to refinance its 6¼% senior secured notes due 2021 and 6% senior secured notes due 2021.
| Issuer: | WMG Acquisition Corp. (Warner Music Group Corp.)
|
| Maturity: | Nov. 1, 2024
|
| Securities: | Senior secured notes
|
| Lead left bookrunner: | Credit Suisse
|
| Joint bookrunners: | Barclays, UBS, Macquarie, Nomura
|
| Trade date: | Oct. 13
|
| Settlement date: | Oct. 18
|
| Ratings: | Moody's: Ba3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Euro-denominated notes
|
| Amount: | €345 million
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Spread: | 437 bps
|
| First call: | Nov. 1, 2019 at 103.094
|
| Price talk: | 4¼% area
|
|
|
| Dollar-denominated notes
|
| Amount: | $250 million
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 323 bps
|
| First call: | Nov. 1, 2019 at 103.656
|
| Price talk: | 4 7/8% area
|
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