WMG wraps tender offer for 9½% notes; no more tenders since early date

By Susanna Moon

Chicago, Nov. 19 - WMG Acquisition Corp., a wholly owned subsidiary of Warner Music Group Corp., received tenders for $987,656,000 principal amount, or 89.79%, of its $1.1 billion of outstanding 9½% senior secured notes due 2016 and $144,824,000 principal amount, or 96.55%, of its $150 million of outstanding 9½% senior secured notes due 2016.

The offer ended at midnight ET on Nov. 14.

The company settled all of the early tendered notes on Nov. 1 and called the remainder for redemption, according to a company press release.

No additional notes have been tendered since the early settlement date, the release noted.

The company said on Oct. 31 that it received the needed consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default and entered into a supplemental indenture.

That day, the company also extended the consent deadline to 5 p.m. ET on Oct. 31 from Oct. 30 due to the impact from Hurricane Sandy, according to a previous press release.

As noted before, the total purchase price was $1,071.96 for each $1,000 principal amount of notes tendered by the consent date, which included a $30.00 premium per $1,000 of notes.

Those who tendered after the consent deadline would have received $1,101.96 per $1,000 of notes.

Holders also will receive accrued interest up to but excluding the payment date.

The tender offer was conditioned on receiving consents from at least a majority of the outstanding notes and 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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