Warner Music Group Corp. Prices Initial Public Offering

By | May 11, 2005 at 12:00 AM

New York, NY – Warner Music Group Corp. today announced it will offer 32,600,000 shares of common stock priced at $17 per share.

5,430,000 shares of common stock were reallocated from the selling stockholders to WMG for sale by it in the offering.

WMG will use the net proceeds from the offering, plus an amount of cash resulting from a decrease in the cash dividend to be paid to its existing shareholders in connection with the offering and a reduction in other cash payments, to repay approximately $574 million of its indebtedness, the same amount of debt repayment as previously announced.

Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. are the joint global coordinators and, together with Lehman Brothers Inc. and Deutsche Bank Securities Inc., served as joint book-running managers for the offering. Banc of America Securities LLC and Citigroup Global Markets Inc. will act as joint lead managers.

Certain WMG stockholders have granted the underwriters of the offering an option to purchase up to 4,890,000 additional shares at the initial public offering price within 30 days to cover over-allotments.

Trading of WMG shares is expected to begin tomorrow on the New York Stock Exchange under the ticker symbol: WMG.

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