Warner Music Is Losing $10 Million Monthly, So They’re Buying Back $1.25B Loans
Warner Music is meeting with lenders with hopes of buying back $1.25 billion of the company's more than $2 billion in outstanding loans. Despite receiving interest as high 11%, investors may be eager to take the deal. WMG reported a net loss for the 3rd ending June 2012 was $32 million. Revenues fell $34 million from the same quarter last year to $654 million. Net loss for the nine months ending in June, 2012 was $94 million.
Revenues for the nine months were $2.06 billion, compared to $2.15 billion for the same period in 2011, according to WMG financials.
While WMG has reported $250 million cash on hand, no details were provided as to how the company will finance the $1.5 billion buy back. The company has engaged Credit Suisse Securities to tender offers.