Moody's gives WMG loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to WMG Acquisition Corp.'s planned $150 million incremental term loan that will be a non-fungible add-on to its $1.145 billion senior secured term loan G due 2028.

The Ba3 is the same as Moody’s on WMG’s other secured debt.

Warner Music Group Corp., the indirect parent of WMG, will use the proceeds to fund the deferred consideration owed in connection with a 2021 acquisition and for general corporate purposes.

“The transaction is credit neutral because the incremental debt will not materially increase WMG's pro forma financial leverage, which will increase to around 3.8x from 3.7x at June 30, 2022 (as adjusted and calculated by Moody's),” the agency said in a press release.

The outlook is stable.

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