Universal Music Confirms €1 Billion Bond Offering

Universal Music Group (UMG) has successfully priced a €1 billion ($1.15 billion) bond offering.

The details:

• The deal is split into two €500 million tranches: one due in 2030 with a 3.375% interest rate, and another due in 2036 with a 4.125% rate.

• The bonds are expected to be issued on June 16, subject to standard closing conditions.

What the money will be used for:

• UMG said the proceeds will support general corporate purposes, including refinancing existing debt and covering transaction-related costs.

• As per Music Business Worldwide, the fundraising follows reports by Bloomberg that UMG had taken out a €1 billion bridge loan earlier this year, which is due for repayment at the end of July.

• The company also has a separate €500 million bond maturing in 2027.

Recent corporate activity:

• The bond sale comes shortly after UMG rejected a $64 billion takeover proposal from Bill Ackman’s Pershing Square, arguing the offer significantly undervalued the company.

• Days later, Pershing Square sold its remaining UMG shares, ending its investment in the music giant.

• UMG simultaneously repurchased €250 million ($290 million) of its own stock directly from Pershing Square.