Warner Music launches solicitation for 11½%, 13¾%, 6%, 6¼% notes

By Jennifer Chiou

New York, Feb. 21 - Warner Music Group Corp. subsidiary WMG Acquisition Corp. and WMG Holdings Corp. announced the launch of a consent solicitation to amend the indentures governing several series of their notes to enable the previously announced acquisition of Parlophone Label Group.

Affected securities include the following:

• 11½% senior notes due 2018;

• 13¾% senior notes due 2019;

• 6% senior secured notes due 2021; and

• 6¼% senior secured notes due 2021.

WMG is specifically seeking consents to modify the reporting covenant of each indenture in connection with the acquisition.

The solicitation will end at 5 p.m. ET on March 4.

The company is offering a consent payment of $1.25 or €1.25 per $1,000 or €1,000 principal amount, respectively. It is seeking consents from holders of a majority of each series.

Under the acquisition agreement, Parlophone is being purchased from Universal Music Group for £487 million (around $765 million) in an all-cash transaction.

Parlophone includes a range of recordings and classic and contemporary artists spanning a wide array of musical genres.

Closing is expected to occur mid-year, subject to regulatory approvals and a consultation procedure with employee representatives.

Wells Fargo Bank, NA is the trustee for the notes.

Credit Suisse is the solicitation agent (212 538-1862 or 800 820-1653). D.F. King & Co., Inc. is the information and tabulation agent (212 269-5550 or 800 290-6427, wmg@dfking.com; 44 20 7920 9700, attn: Damian Watkin/Katerina Papamichael).

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

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