Universal Music Group is weighing a potential EUR €1 billion (USD $1.15 billion) bond sale.
That’s according to Bloomberg, which reported on Monday (June 8) that UMG is “speaking to investors ahead of a possible €1 billion ($1.15 billion) two-part bond sale”.
Citing a person familiar with the matter, Bloomberg reported that UMG would put the proceeds toward refinancing debt and general corporate purposes.
The news follows UMG’s recent rejection of a $64 billion takeover bid from Bill Ackman’s Pershing Square.
It also comes just days after Ackman’s fund sold off its remaining UMG shares.
Universal Music Group NV trades on the Euronext Amsterdam.
The bond sale would comprise two tranches, each expected to total €500 million, with maturities of four and 10 years, according to Bloomberg.
The report noted, citing data compiled by Bloomberg, that UMG took on a €1 billion bridge loan earlier in 2026, with repayment falling due at the end of July.
A separate €500 million bond is due to mature in 2027.
UMG holds a Baa1 rating from Moody’s Ratings and a BBB+ rating from S&P Global Ratings.
BNP Paribas and Crédit Agricole CIB are managing the offering as global coordinators.
Joining them as active bookrunners are IMI – Intesa Sanpaolo, Mediobanca, Mizuho, Morgan Stanley, Banco Santander and Société Générale.
A UMG spokesperson had not responded to Bloomberg‘s request for comment.
Universal Music’s board rejected Bill Ackman’s takeover proposal on Friday, May 29.
The board said it turned down the offer because it “fundamentally and materially undervalues UMG and will not deliver superior value creation.”
The Bolloré Group, which controls 28% of UMG through a direct stake and its holding in Vivendi, had urged the UMG board to reject the offer.
Pershing Square first submitted its non-binding proposal on April 7, valuing UMG at approximately €55.8 billion ($64.4 billion).
Pershing Square sold around 80.6 million UMG shares via an overnight placing on Wednesday (June 3).
The placing, handled by Bank of America, raised around €1.42 billion, according to Bloomberg.
UMG bought back €250 million ($290 million) of its own stock directly from Pershing Square on Thursday (June 4).
The €250 million repurchase was carried out separately from a €500 million share buyback program that UMG launched in March.
Shareholders approved a further €500 million repurchase authorization at the company’s annual general meeting on Wednesday, May 13.
Pershing Square first acquired around 10% of UMG from Vivendi in the summer of 2021 for approximately $4 billion.
In January 2025, Pershing Square distributed 47 million UMG shares to co-investors as one of its funds was wound down.
It then sold a further 2.7% stake for around $1.4 billion in March 2025.
Ackman resigned from UMG’s board in May 2025.
Taken together, the past week’s deals ended Pershing Square’s run as a shareholder in UMG.Music Business Worldwide