Universal Music Group to Issue 1 Billion Euros in Bonds on Amsterdam Euronext

Universal Music Group (UMG) said on Tuesday (June 9) it priced a total of 1 billion euros in bonds, to be issued on the Amsterdam Euronext stock exchange in an offering expected to close on June 16.

The bonds will be issued in two tranches: the first 500 million euros are four-year notes priced at 3.375% due in 2030, and the second 500 million euros are 10-year notes of 4.125% due in 2036.

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The company said proceeds from the bond sale will go to general corporate purposes, including refinancing debt, transaction fees and expenses.

Offered through UMG’s Amsterdam-listed euro medium-term note program, the bonds will be sold to investors outside the U.S., according to regulatory rules. Bloomberg , which reported the bond issuance was planned earlier this week, reported UMG arranged a 1 billion euro bridge loan, which matures in late July, and also has a half-billion euro bond that comes due in 2027.

The bond issuance follows two months of corporate drama, in which UMG’s board rejected Bill Ackman’s Pershing Square’s offer to merge UMG with a Pershing entity and move the music company’s listing to the United States. Pershing sold its UMG stake following the rejection, of which UMG repurchased around 250 million euros through part of its billion-euro stock repurchase program.

UMG’s share price was down 1.26% at 12:30 p.m. ET at 17.96 euros.

The French banks BNP Paribas and Crédit Agricole CIB are the global coordinators on the offering, while IMI — Intesa Sanpaolo, Mediobanca, Mizuho Morgan Stanley, Santander and Société Générale are active bookrunners. Bank of America, Citigroup, Goldman Sachs and MUFG acted as co-managers on the offering.

_Originally reported by [Billboard](https://www.billboard.com/pro/universal-music-group-1-billion-euros-in-bonds/)._