Warner Music Reportedly Plans $1.05 Billion Junk Bond Issue Prior To Sale

Warner Music Group Corp. reportedly plans to sell $1.05 billion of high yield junk bonds before its sale to Len Blavatnik's Access Industries. The sale, which could happen as early as next week, includes a mix of senior secured notes and bonds schedule to come due between 2016 and 2019.  The offering would be the largest since Russia’s VimpelCom Ltd. sold $2.2 billion of debt on June 22, according to Bloomberg. A breakdown of the bond sale:

• WMG Acquisition Corp.- $150 million of 9.5% senior secured notes due in 2016 and $695 million of senior debt maturing in 2018

• WMG Holdings Corp. plans to offer $200 million of senior bonds due in 2019

Blooberg's source declined to be identified because terms aren’t set.