Benzinga | Aug 5, 2021 08:04AM EDT

Warner Music Subsidiary Seeks To Raise Capital Via Private Senior Notes Offering

* Warner Music Group Corp (NASDAQ:WMG) subsidiary WMG Acquisition Corp has commenced a private offering of euro-denominated senior secured notes. The offer size was not disclosed.

* WMG Acquisition will use the offering proceeds with cash on hand to fund the conditional redemption of its outstanding 3.625% senior secured notes due 2026 due for redemption on Aug. 16.

* Warner Music recently reported a Q2 revenue beat aided by digital revenue strength.

* Warner Music held $3.4 billion in total debt as of Jun. 30. It had a cash balance of $442 million.

* The stock has lost 4.3% year-to-date.

* Price action: WMG shares closed lower by 2.65% at $36.36 on Wednesday.