Universal Music Group prices $1.15bn bond offering

The bond sale consists of two tranches worth €500 million each. According to UMG, the first tranche comprises 3.375% senior unsecured notes due in 2030, while the second consists of 4.125% senior unsecured notes due in 2036.

The company announced that the offering is expected to close on 16 June, subject to customary closing conditions.

UMG said the proceeds will be used to refinance existing debt and cover transaction-related fees and expenses. The notes will be issued under the company’s Euro Medium Term Note programme and listed on the Euronext Amsterdam stock exchange.

The securities were offered to investors outside the United States under Regulation S of the US Securities Act of 1933.

The pricing follows reports earlier this week that UMG was considering a two-part bond sale. According to financial reports, the company secured a €1 billion bridge loan earlier in 2026, with repayment due at the end of July. UMG also has a separate €500 million bond maturing in 2027.

The company currently holds investment-grade credit ratings of Baa1 from Moody's Ratings and BBB+ from S&P Global Ratings.

The bond issue comes shortly after UMG rejected a takeover proposal from investment firm Pershing Square Capital Management, led by Bill Ackman.

The non-binding offer, submitted in April, valued UMG at approximately €55.8 billion (US$64.4 billion). UMG’s board rejected the proposal in May, stating that it significantly undervalued the company and would not provide superior value to shareholders.

The proposed acquisition was also opposed by the Bolloré Group, which controls approximately 28% of UMG through its direct holdings and its stake in Vivendi.

The latest financing activity also follows Pershing Square’s exit as a shareholder in UMG. Earlier this month, the investment firm sold approximately 80.6 million shares through an overnight placement reportedly valued at around €1.42 billion.

As part of the transaction, UMG repurchased €250 million worth of its own shares from Pershing Square. The buyback was conducted separately from a €500 million share repurchase programme launched by the company in March. Shareholders later approved an additional €500 million buyback authorisation at UMG’s annual general meeting in May.

Pershing Square first acquired a stake of about 10% in UMG from Vivendi in 2021 for approximately US$4 billion. Ackman subsequently resigned from UMG’s board in 2025.

The bond offering was coordinated by BNP Paribas and Crédit Agricole CIB, with several international banks participating as bookrunners and co-managers.