NEW YORK (Hypebot) –
In a report to shareholders this morning, Warner Music Group revealed that in the quarter ending June 30th, 2009, total revenue decreased 9.3% and operating income from continuing operations declined 51%. Total losses from continuing operations swelled to $37 million from $9 in the prior year quarter.
WMG improved its financial position during the quarter with a $1.1 billion offering of secured notes which the company used to pay off previous loans. But the new notes carry a hefty 9.5% interest rate and come due in just 7 years.
This morning's SEC filing showed:
Interest expense this quarter included $18 million or $.12 per diluted share of previously unamortized deferred financing fees related to the company's senior secured credit facility. These fees were written off in the current quarter when the company repaid the credit facility in full in connection with its senior secured bond offering.
Read the full filing here