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WMG gets majority consents for 9½% notes; solicitation extended
By Jennifer Chiou
New York, Oct. 31 - WMG Acquisition Corp., a wholly owned subsidiary of Warner Music Group Corp., announced the receipt of needed consents in its separate cash tender offers to purchase its $1.1 billion of outstanding 9½% senior secured notes due 2016 and $150 million of outstanding 9½% senior secured notes due 2016.
The company is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default.
WMG has entered into a supplemental indenture, according to a news release.
In addition, the company has opted to extend the consent deadline to 5 p.m. ET on Oct. 31 from Oct. 30 due to Hurricane Sandy, which struck the East Coast.
As announced, the total purchase price will be $1,071.96 for each $1,000 principal amount of notes tendered by the consent date, which includes a $30.00 premium per $1,000 of notes.
The offer will end at midnight ET on Nov. 14.
Those who tender after the consent deadline will receive $1,101.96 per $1,000 of notes.
Holders also will receive accrued interest up to but excluding the payment date, which is expected to be Nov. 1 for early tendered notes.
The tender offer is conditioned on receiving consents from at least a majority of the outstanding notes and completion of debt financing.
The company previously said that it plans to call for redemption all of the notes that remain outstanding after completion of debt financing.
Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-1862) is the dealer manager and solicitation agent for the offers. D.F. King & Co., Inc. (800 714-3312, collect 212 269-5550 or e-mail wmg@dfking.com) is the information agent.
Warner Music is a New York-based music content company.
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