EMI Music Publishing Said to Set Rate on $1.05 Billion Term Loan
January 30, 2012, 9:23 AM ESTBy Krista Giovacco
Jan. 27 (Bloomberg) -- EMI Music Publishing set the initial rate it will pay on a $1.05 billion term loan to support its acquisition by Sony Corp., according to a person with knowledge of the matter.
The company is proposing to pay 4.75 percentage points more than the London interbank offered rate on the six-year debt and the lending benchmark will have a 1.25 percent floor, said the person, who declined to be identified because the terms are private.
EMI may sell the debt at 98.5 cents on the dollar, the person said, reducing proceeds for the borrower and boosting the yield for investors.
UBS AG is arranging the transaction, and lenders must let the bank know by Feb. 15 whether they will participate in the deal, the person said.
To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net
To contact the editor responsible for this story: Chapin Wright at cwright4@bloomberg.net
