EMI Music Publishing said to reduce rate on $1.05 billion loan

EMI Music Publishing reduced the interest rate and increased the discount on a $1.05 billion term loan supporting its acquisition by Sony Corp., according to a person with knowledge of the matter.

The company cut the rate by 0.5 percentage point, to 4.25 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the deal is private. The lending benchmark has a 1.25 percent minimum, which is unchanged.

EMI decreased the discount to 99 cents on the dollar from 98.5 cents, the person said.

Lenders must let UBS AG, the bank arranging the transaction, know by Feb. 24 whether they will participate in the deal.