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Aug 2 (Reuters) – SESAC, whose clients include Adele, Bob Dylan and Neil Diamond, on Friday priced a two-part $560 million bond offering backed by music royalties and licensing agreements, according to a source familiar with the deal.
The largest piece of the securitization was a fixed-rate note, worth $530 million with a weighted average life of 6.7 years. The note offers a yield of 5.25%, lower than a guidance 5.50% discussed earlier this week, the source said.
The smaller portion of the deal was a floating-rate note, worth $30 million with a weighted average life of 4.9 years. It was not publicly offered.
Kroll Bond Rating and Morningstar assigned these notes ratings of BBB- and BBB, respectively.
The Blackstone Group bought SESAC, the third-biggest performing rights company in the United States, in February 2017 for $1.1 billion.
Guggenheim Securities was the sole structuring adviser and book manager of this Rule 144a SESAC deal.
The bond deal will settle on Aug. 9. (Reporting by Richard Leong; Editing by Cynthia Osterman)
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