Standard & Poor's Ratings Services has lowered Warner Music Group's corporate credit rating to B+. The change was announced following WMG's announcement that it would be acquired by Access Industries for $3.3 billion, but prior to today's soft earnings report that showed continued losses. More details of the sale and the new owners plans continue to leak:
- Multiple sources are reporting that no immediate changes in the WMG executive suite are planned by the new owners who are also contemplating a run at EMI to combine the two music groups.
- Documents filed with the SEC show that UBS and Credit Suisse are providing Access with $1.2 billion in financing to complete the sale.
- The sale must be completed by November 11th.
- The documents described the penalties each party must pay if it breaks the deal before that deadline:
- If WMG cancels in favor of a superior offer, it must pay $56 million.
- If Access reneges, it must pay WMG $60 million.
