Warner Music is refinancing some of the loans used by Access Industries to acquire the major last year, according to a regulatory filing.
According to Billboard, the firm hopes to capitalise on relatively low interest rates in the debt markets just now by buying back some of its existing debt, and then entering into new deals with bondholders, details of which were revealed at that previously reported money lender meeting yesterday. The major has also announced it has arranged a new credit facility with its lenders, moving up from $60 million to $150 million.
The ultimate aim of all this is to reduce the major’s overall interest payments, which will help cashflow and such things. Credit Suisse Securities will manage the debt buy back.