Photo credits: Zeca Souza
Universal Music Group (UMG) has successfully priced a €1 billion bond offering, split into two tranches of €500 million each, with the funds earmarked for general corporate purposes, including the refinancing of existing debt, according to a report by Bloomberg. The offering, comprised of 3.375% senior unsecured notes due in 2030 and 4.125% notes due in 2036, is expected to close on June 16.
This financial move comes shortly after the company secured a bridge loan earlier in 2026 and highlights the music giant’s ongoing efforts to manage its capital structure while maintaining its investment-grade credit ratings from Moody’s and S&P.
The new financing arrives on the heels of a significant strategic shift for the company, following its rejection of a $64 billion takeover bid from Bill Ackman’s Pershing Square Capital Management. UMG’s board turned down the non-binding offer in May, arguing that it significantly undervalued the company and failed to provide superior value to shareholders, a stance supported by the Bolloré Group, which holds a 28% stake in the firm. This rejection signalled the conclusion of a period of tension surrounding UMG’s ownership and valuation.
Meanwhile, the bond sale coincides with Pershing Square’s complete exit as a shareholder in UMG. Earlier this month, the investment firm sold its remaining 80.6 million shares in an overnight placement valued at approximately €1.42 billion, a transaction that also included a €250 million share buyback by UMG. Having initially acquired a 10% stake in the company back in 2021, Pershing Square’s departure marks the end of its investment relationship with UMG, further separating the firm from its former shareholder following Ackman’s resignation from the board in 2025.
