Sony-EMI Deal Popular with Lendors

SONY-EMI DEAL DEBT SCRAMBLE: The debt offering for the Sony-led $2.2 billion acquisition of EMI Music Publishing has attracted a bevy of interested investors. The effort to raise $1.3 billion to fund the deal was so popular, the anticipated interest rate on the bonds, expected just last November to be about 12%, will come in at roughtly 5.5%. The Sony and UBS offering, which closed Friday, was so sought after, it attracted up to $3 billion in offers. “The market rewards consolidation because it creates cost savings and enhanced cash flow,” a UBS banker said. Sony is expected to own a 38% stake in EMI Music Publishing and shell out around $325 million of the $900 million in equity—with the remainder coming from a consortium that includes the estate of Michael Jackson, Mubadala Development Co., Blackstone’s GCO Capital Partners and David Geffen, among others. (2/21p)