July 31, 2019 / 1:30 PM / in 7 months

SESAC seen pricing $560 mln bond deal Friday -source

July 31 (Reuters) - SESAC, whose clients include Adele, Bob Dylan and Neil Diamond, is expected to price a two-part $560 million bond offering backed by music royalties and licensing agreements on Friday, according to a source familiar with the deal on Wednesday.

The largest piece of the securitization is a fixed-rate note, worth $530 million with a weighted average life of 6.7 years. The note is being discussed to offer a yield of about 5.50%, the source said.

The smaller portion of the offering is a floating-rate note, worth $30 million with a weighted average life of 4.9 years. It will not be publicly offered.

Kroll Bond Rating and Morningstar assigned these notes with ratings of BBB- and BBB, respectively.

The Blackstone Group bought SESAC, the third biggest performing rights company in the United States, in February 2017 for $1.1 billion.

Guggenheim Securities is the sole structuring adviser and book manager of this Rule 144a SESAC deal. (Reporting by Richard Leong; Editing by Steve Orlofsky)

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