The Warner Music Group today is holding a meeting for its bond holders to announce its plans to buy back $1.25 billion of the $2.209 million in debt the company carries.

It is proposing to buy back two tranches of debt: $150 million in secured notes and  $1.1 billion in secured notes, both paying 9.5% in interest and both due to mature in 2016. The latter offering of notes was initially for $1.15 billion and was still outstanding on June 30, 2012, according to the company’s most recent 10-q filing. So that could mean that that the Warner Music Group will leave about $50 million of those notes in investors’ hands, along with two other outstanding higher-paying interest notes: $765 million in unsecured notes due in 2018; $150 million in holding notes due in 2019.

If the WMG buyback plans are successful (as is expected), the company will have reduced its debt to about $960 million.

WMG has an estimated $250 million in cash, so at press time it was unclear how it will fund the buyback: with an equity infusion into the company from Access Industries; or by issuing more debt, with different, more favorable terms for the company.

According to a company press release, Credit Suisse Securities (USA) LLC has been hired to manage the debt buyback. While the buyback offer is set to expire Nov. 14, investors have until Oct. 30 to tender their notes and receive full payment plus an incentive payment for turning the notes in before the latter date.

In conjunction with this meeting, Warner released some preliminary earning estimates yesterday. [Billboard.biz]