August 2, 2019 / 5:33 PM / 4 months ago

SESAC sells $560 mln in bonds backed by music royalties

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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