harmony has reportedly begun a process that could see it become the latest major music company to enter the financial bond game.
financial giants Apollo Global Management reportedly sold a $1.65 billion bond backed by music rights from Concord’s portfolio, which would mark the music company’s first securitization.
That’s according to Bloombergquotes people with knowledge of the matter, who say that Apollo ‘has secured an anchor order for a large debt’.
The report adds that the deal ‘repackages royalty payments’ from both publishing and sound recording rights, ‘from the music catalog of a number of singers and songwriters’, including Phil Collins, Genesis, Evanescence and REM
Bloomberg noted that “a Concord spokesperson said the company is considering a bond sale and directed follow-up questions to Apollo, a representative who declined to comment”.
Citing a pre-sale report, Bloomberg says that the Kroll Rated Bonds Authority ‘expects to rate Concord’s securities and is set to give them an A+ rating’.
Today’s news comes just over 12 months MBW talk to you that financial bonds are about to become a big deal in the music business.
That prediction has come true, time and again, over the past year, with several headlines popping up on our pages about music companies launching bond offerings through royalties are securitized from copyright.
For example, in December 2021, private equity firm Northleaf Capital announced that it had raised $303.8 million by selling rights-backed asset-backed securities (ABS) music – including songs written by Pete Townshend for The Who and by country star Tim McGraw.
Based on BloombergThe stock will be supported by both publishing and recording rights, as well as other sources of income, on a total of 52,729 songs.
Those songs make up part of the Spirit Music Group’s catalog; Spirit owns a total portfolio of more than 100,000 musical properties.
Our prediction came true again in February, when MBW report that by the second half of October 2021, KKR – through the Chord Music joint venture – get a large portfolio right from Kobalt for $1.1 billion and intends to securitize that portfolio into bonds.
Based on Bloomberg, KKR Credit Advisors is using a catalog of 65,000 songs – including hits from The Weeknd, Stevie Nicks and Childish Gambino – to sell more than $732 million in asset-backed securities backed by royalties. publishing and recording.
During the summer, more news from this world get therewith one pre-sale report from the Kroll Bond Rating Agency (KBRA)insists that misdiagnosis is in the process of launching its own package of music royalty-backed bonds – a $221.65 million securitization offering.
Music Licensing/Collection Association of America, QUESTION also closed a 335 million USD summer bond trading. This offering is essentially a securitization of the entire business. Bloomberg In its report at the time, SESAC had “effectively collateralized” its company.
In September, harmony buying catalog of published and recorded music by Tony Banks, Phil Collins and Mike Rutherford, as well as a catalog of published and recorded music from their years with the band Genesis in a deal The The Wall Street Journal report was ‘valued at over $300 million’.
The news follows a recent string of M&A activities from Concord, such as buy, lean on, cling to property of HitCo Entertainment and it buy back eight figures by Australian and New Zealand-based music publisher, Native Tongue.
harmony spent about 1 billion dollars on acquisitions during its first 14 years in business. It then spent two nine-figure sums to buy one majority of shares In pulse music group in 2020, and afterward Imagine Dragons Publishing Catalog, Formerly have been Downtowncopyright portfolio of the company for $400 million in 2021.Global Music Business
