Most proceeds will pay debt, owners.

Warner Music Group says in a filing with the Securities and Exchange Commission that it expects to receive net proceeds of $581 million after deducting expenses associated with its upcoming $750 million initial public offering. However, only $7 million will be put toward general corporate purposes.

The bulk of the proceeds from the offering will be used to pay down debt and to pay WMG's private equity ownership, a consortium that includes WMG chairman/CEO Edgar Brofman Jr., Thomas H. Lee, Bain Capital and Providence Equity Partners Inc.

In a pair of transactions related to the IPO, WMG ahead of the offering will declare a special cash dividend of $141.5 million for the investor group --$10.1 million of which is earmarked for 10 top Warner executives, including Bronfman. Also, WMG will pay a $73 million "termination fee" for management services provided by the investor group.

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