Universal Music Group N.V. successfully prices €1.0bn of new Eurobond Notes

Rhea-AI Summary

Universal Music Group N.V. announced the pricing of €500m of 3.000% senior unsecured notes due 2027 and €500m of 3.750% senior unsecured notes due 2032. This €1.0 billion bond offering is part of their Euro Medium Term Note programme, set to close on June 30, 2022, subject to customary conditions. The proceeds will be utilized for refinancing existing debt and covering transaction costs. The notes will be listed on Euronext Amsterdam and sold to non-U.S. investors. Leading banks involved include BNP Paribas and BofA Securities among others.

Positive

• Successful pricing of €1.0 billion in senior unsecured notes, enhancing liquidity.
• Proceeds earmarked for refinancing existing indebtedness, potentially improving financial stability.

Negative

• Dependency on refinancing existing debt may indicate prior financial strains.
• Potential risks associated with issuing new debt include increased leverage.

THIS ANNOUNCEMENT IS NOT AN OFFER TO SELL OR ISSUE OR INVITATION TO PURCHASE OR SUBSCRIBE FOR, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES.

HILVERSUM, Netherlands, June 23, 2022 /PRNewswire/ -- Universal Music Group N.V. ("UMG" or the "Company") today announced that it has successfully priced €500m of 3.000% senior unsecured notes due 2027 and €500m of 3.750% senior unsecured notes due 2032 (collectively, the "Notes"). The offering is expected to close on June 30, 2022, subject to customary closing conditions.

The Notes will be issued from the Company's newly established Euro Medium Term Note programme, listed on Euronext Amsterdam and sold to investors outside the U.S. in reliance on Regulation S under the Securities Act of 1933, as amended.

The proceeds from the issuance will be used for refinancing of existing indebtedness and paying transaction fees and expenses.

BNP Paribas and BofA Securities acted as Global Coordinators and together with Citigroup, Goldman Sachs, MUFG and Société Générale as the Active Bookrunners on the issuance.  CACIB, Commerzbank, IMI-Intesa Sanpaolo, ING, Mediobanca, Mizuho, Morgan Stanley Europe SE, Natixis and Santander acted as Passive Bookrunners. 

About Universal Music Group
At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit www.universalmusic.com.

Contacts

Media
James Murtagh-Hopkins – communicationsnl@umusic.com

Investors
Erika Begun – investorrelations@umusic.com

Cautionary Notice
This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7 (1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).

Forward-looking statements
This press release may contain statements that constitute forward-looking statements with respect to UMG´s business and plans, including the debt transactions contemplated hereby.  Although UMG believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance.  Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMG´s control, including, but not limited to, UMG´s inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMG´s reliance on digital service providers, UMG´s inability to execute its business strategy, the global nature of UMG´s operations, UMG´s inability to protect its intellectual property and against piracy, UMG´s inability to attract and retain key personnel, changes in laws and regulations and the other risks that have been described in UMG´s 2021 annual report and base prospectus dated June 16, 2022, which are available on UMG's website. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-music-group-nv-successfully-prices-1-0bn-of-new-eurobond-notes-301574304.html

SOURCE Universal Music Group N.V.

FAQ

What are the details of Universal Music Group's note issuance on June 23, 2022?

UMG announced €500m of 3.000% senior unsecured notes due 2027 and €500m of 3.750% senior unsecured notes due 2032, totaling €1.0 billion.

What will the proceeds from Universal Music Group's bond issuance be used for?

The proceeds will be used for refinancing existing indebtedness and paying transaction fees.

When is the closing date for UMG's bond offering?

The bond offering is expected to close on June 30, 2022, subject to customary closing conditions.

Where will the new notes issued by Universal Music Group be listed?

The notes will be listed on Euronext Amsterdam.

Who are the primary banks involved in UMG's note issuance?

BNP Paribas and BofA Securities acted as Global Coordinators, along with other major banks.