Music

UMG Opens $800 Million Bond Offering for Debt Restructuring

UMG Opens 0 Million Bond Offering for Debt Restructuring
Photograph Credit score: Ibrahim Boran

Common Music Group opens an $800 million bond providing for refinancing present debt and paying transaction charges and bills.

Common Music Group introduced its plans to boost 750 million euros ($800 million) from the sale of 4.000% senior unsecured notes due 2031. The notes will probably be issued from UMG’s Euro Medium Time period Observe program and listed on Euronext Amsterdam, offered to traders exterior the U.S. in reliance on Regulation S underneath the U.S. Securities Act of 1933. The proceeds from the issuance are going towards the refinancing of present debt and paying transaction charges and bills. UMG expects the providing to shut on June 13.

In line with the corporate’s monetary statements, UMG had a complete debt of two.25 billion euros ($2.4 billion) on the finish of 2022 and a internet debt-to-adjusted EBITDA ratio of 0.9. The corporate offered greater than $1 billion of bonds in June 2022, with half of that being 3.000% senior unsecured notes due 2027. The opposite half was 3.750% senior unsecured notes due in 2032.

BNP Paribas and BofA Securities acted as World Coordinators, and along with Crédit Agricole CIB, Goldman Sachs Financial institution Europe SE, ING, and Mizuho as Lively Bookrunners on this issuance. Citigroup World Markets Europe AG, Intesa, Mediobanca, Morgan Stanley Europe SE, MUFG Securities (Europe) NV, Natixis, Santander, and Société Générale acted as co-managers.

Rankings company Moody’s gave an outlook of “secure” for UMG’s notes issued in 2022, citing UMG’s “best-in-class music catalog,” “skilled administration group,” and “strong monetary profile” along with the help it receives from “secular tailwinds” for the worldwide music business. 

Moody’s ranking additionally mirrored challenges comparable to UMG’s “continued want for investments to safe new hits,” “elevated competitors from the emergence of economic gamers” within the catalog acquisition house, and unexpected “dangers associated to evolving applied sciences” that previously have damage music corporations’ revenues. UMG lately saved Colombian famous person Karol G’s catalog underneath its umbrella as she strikes over to Interscope Information.

 

Related posts

Taylor Swift’s Eras Tour Could Become First Ever to Gross $1B

Admin

Music Publishers Face Recalcitrant Elon Musk In Copyright Lawsuit

Admin

Electronic Artist Martin Solveig Sells Recorded Catalog to BMG

Admin

Leave a Comment