Investors scooped up a whopping $1.1 billion in new debt securities issued by the Warner Music Group (WMG). This more than doubles the expected $500 million haul that the WMG announced that it was seeking just yesterday.  Unless one dismisses the sale as Wall Street insanity, the sale of secured notes has to be seen as a vote of confidence for Warners, particularly given the state of both the recorded music industry and the global economy.

Some of the money will be used to refinance debt, but Media Memo shared that Pali Research analyst Rich Greenfield found language in the offering allowing Warners to redeem the notes early “if a major music transaction occurs”.  To Greenfield (and Hypebot) this means that Edgar Bronfman Jr. & Company still hopes that they can somehow hook up with EMI; a merger that both label groups have talked about on and off for almost a decade.