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WMG completes refinancing for lower interest payments

Tom Pakinkis
Warner Music Group

Warner Music Group has successfully completed a refinancing process that will substantially reduce the company’s interest payments. 

Billboard estimates that the company’s interest payments will reduce by around $43 million annually. WMG is also making partial principal repayments and has negotiated more flexibility to raise funds if necessary.

Warner Music Group secured a $600 million senior secured term loan, maturing on November 1 2018, with annual interest payments of 5.25%. 

The record company also issued $500 million in senior secured notes with 6% interest payments and €175 million senior secured notes with 6.25% interest. Both debt offerings mature on January 15 2021.

The loan carries interest payments of around $31.5 million annually with dollar notes carrying approximately $30 million in annual interest payments and euros carrying $14.2 million. 

Annual interest payments for Warner Music will now total about $184 million against $227.5 million before refinancing.

The company has also been granted the ability to borrow more money should it need to.

The news comes around the time that Warner Music Group also announced a US restructure that brings Rhino and Warner/Chappell together.

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Tags: WMG, Warner Music Group, finance

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