Warner Music Group has announced that it is refinancing part of the $2.21 billion debt taken by parent Access Industries to finance its acquisition in 2011.
A regulatory filing shows that the company has commenced separate tender offers to purchase any and all of the outstanding debt securities listed in the table below for cash.
There are two debts totaling $1.25 billion: $150 million and $1.1 billion in secured notes paying 9.5% in interest and due to mature in 2016.
Sources familiar with the company’s strategy speaking to Billboard say that WMG hopes to take advantage of relatively low interest rates in debt markets as well as extending its payment period.
Billboard also says that the company held a meeting with prospective lenders for a new debt offering, issuing $635 million in senior secured notes as well as obtaining a $630 million term bank loan due in 2019.