By Paul A. Harris
Portland, Ore., Nov. 17 – WMG Acquisition Corp. priced a $540 million issue of 3¾% eight-year senior secured notes (Ba3/BB+) at 99.145 to yield 3 7/8% in a Wednesday drive-by, according to market sources.
The yield printed at the wide end of yield talk in the 3¾% area but in line with initial guidance in the high-3% area.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC.
The issuing entity is a wholly owned subsidiary of New York-based Warner Music Group Corp., an entertainment conglomerate, which plans to use proceeds from the notes for potential acquisitions of certain music and music-related assets, or for general corporate purposes.
| Issuer: | WMG Acquisition Corp.
|
| Amount: | $540 million
|
| Maturity: | Dec. 1, 2029
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 3¾%
|
| Price: | 99.145
|
| Yield: | 3 7/8%
|
| Spread: | 238 bps
|
| First call: | Dec. 1, 2024 at 101.875
|
| Special call: | 10% of notes annually at 103 during non-call period
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Ratings: | Moody's: Ba3
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3¾% area
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
