By Paul A. Harris
Portland, Ore., Oct. 3 – Warner Music Group Corp. priced an upsized €250 million issue of eight-year senior secured notes (Ba3/B+) at par to yield 3 5/8% on Tuesday, according to a market source.
The issue size increased from €200 million.
The yield printed at the tight end of yield talk in the 3¾% area.
Credit Suisse managed the sale.
The issuing entity is WMG Acquisition Corp., a wholly owned subsidiary of Warner Music Group.
The New York-based music company plans to use the proceeds to fund the partial redemption of its 4 1/8% senior secured notes due 2024. The incremental proceeds resulting from the €50 million upsizing of the deal will be used for general corporate purposes.
| Issuer: | WMG Acquisition Corp.
|
| Amount: | €250 million, increased from €200 million
|
| Maturity: | Oct. 15, 2026
|
| Securities: | Senior secured notes
|
| Lead: | Credit Suisse
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Call protection: | Three years
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3¾% area
|
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