Music Groups Struggling to Issue Debt

From Joshua Chaffin, MSNBC:

The turmoil in credit markets is frustrating plans by EMI and Warner Music to issue billions of dollars in debt backed by revenues from their publishing catalogues.

Both companies have been considering such moves as they contend with an industry collapse in compact disc sales and a difficult transition to digital distribution.

The proceeds could have been used to refinance outstanding debt, pay a dividend to frustrated shareholders and reinvest in core operations.

However, neither EMI nor Warner is expected to press ahead soon, given the distressed state of the credit markets.

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