(CelebrityAccess) — Warner Music Group Corp. appears to be stocking up on cash with an eye towards a major acquisition.
In a notice to the company’s investors on Wednesday, WMG announced plans to raise $535 million through a private offering of securities, notably senior secured notes.
According to the financial filing, WMG plans to use the capital raised through the offering for the potential acquisitions “certain music and music-related assets.”
The notes will be issued through a private offering, meaning they don’t need to be registered under the United States Securities Act of 1933 and will be made available only to qualified institutional buyers, WMG said.
If for some reason, the planned acquisition falls through, WMG will use the money for other purposes, or may redeem some, or all of the notes, the label group said.
It is unclear what WMG acquisition WMG is eyeing for their soon-to-be-raised capital, but a substantial repository of recorded music catalog seems likely.
H/T to the sharp eyes at Music Business Worldwide for first reporting on this filing.