Warner Looking For Money

Warner Music Group is looking to borrow around $820 million in loans to fund its $750 million purchase of Parlophone and for general corporate purposes, according to Bloomberg.

The newswire claims sources revealed Credit Suisse Group AG is arranging financing, which includes a $710 million term portion and a $110 million piece. Credit Suisse was reported to have arranged a lenders’ meeting for May 7.

Warner bought Parlophone, home to Coldplay, Pet Shop Boys, and Tina Turner, from Universal Music Group as the Vivendi-owned company sold assets to ensure European Commission approval for its $1.9 billion takeover of EMI.

If Warner gets the money, Bloomberg reckons the debt will cost 3.25 percent more per year than the London interbank offered rate and will be for a period of seven years.