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)