Common Music Group introduced plans on Thursday (June 23) to promote 1 billion euros ($1.05 billion) of notes. UMG priced 500 million euros ($526 million) of three.000% senior unsecured notes due 2027 and 500 million euros ($526 million) of three.750% senior unsecured notes due 2032. The providing is anticipated to shut on June 30, 2022.
The debt can be bought via the corporate’s new Euro Medium Time period Notice program, listed on the Euronext Amsterdam alternate the place UMG’s inventory is listed. Often known as a debt safety, a euro medium-term notice is issued and traded exterior of the USA. Like an fairness safety – widespread inventory – a debt safety permits an organization to boost cash via public markets. However in contrast to fairness, debt doesn’t give the shareholder possession of an organization. UMG didn’t elevate capital when it listed on the Euronext Amsterdam in Sept. 2021 as a spin-off from Vivendi.
The proceeds from the issuance can be used to refinance current indebtedness and pay transaction charges and bills. UMG carried 2.6 billion euros ($2.7 billion) of long-term debt and money of 585 million euros ($616 million) as of December 31, 2021, in keeping with its monetary presentation for 2021. That gave UMG a internet debt-to-EBITDA ratio of 1.2. UMG’s revolving credit score facility and time period mortgage each require a monetary internet debt to EBITDA ratio of 4.0 or decrease, in keeping with UMG’s 2021 annual report. Moody’s and S&P World Scores each imagine UMG will keep a debt-to-EBITDA ratio beneath 2.0.
BNP Paribas and BofA Securities acted as world coordinators with Citigroup, Goldman Sachs, MUFG and Société Générale because the energetic bookrunners on the issuance. CACIB, Commerzbank, IMI-Intesa Sanpaolo, ING, Mediobanca, Mizuho, Morgan Stanley Europe SE, Natixis and Santander acted as passive bookrunners.