Concord paid $217.3 million to acquire a secret catalog.
This is according to a report released by Kroll Bond Ratings, which revealed that the funds used in the acquisition came from funds raised in Concord’s latest asset-backed securities (ABS) transaction. The deal enables the company to raise capital US$850 million Debt financing through private securitization backed by its catalog of music rights.
Kroll’s report did not name the other party in the catalog deal, but did refer to them as “a highly successful Latin music artist and songwriter.”
Kroll calls $850m ABS deal an offering 2024-1 Series Notes, Marks writings as part of wider release of third series of notes $2.6 billion Bond release backed by music rights in Concord’s catalog.
First series of notes (2022-1 Series Notes) Arrival in 2022, total US$1.8 billionwhich was described at the time as “the largest music copyright asset-backed securitization issuance in the industry to date, both in terms of issuance scale and number of assets (more than one million copyrights).”
Second Series of Notes from Concord (2023-1 Series Notes),total $500 million, Released in October 2023.
According to a report issued by Kroll Bond Ratings, in addition to being used to acquire the above-mentioned $217.3 million catalog, the proceeds from the latest transaction (2024-1 Series Notes), will also be used to repay US$500 million Series 2023-1 Outstanding Notes “to establish a reserve account as needed, to pay certain transaction costs, and for other general corporate purposes.”
Kroll said that after the 2023-1 series notes are redeemed, the relevant ratings will be withdrawn, and only the 2022-1 series notes and 2024-1 series notes will remain outstanding.
Kroll’s report states that Concord’s ABS deal is securitized through royalties from more than 1 million titles, master recordings and related assets of “top artists and songwriters” including REM, Creed, Genesis, Phil Collins, Mike + The Mechanics and Carrie Underwood.
Kroll noted that “additional collateral was provided for the securitization” in July 2024 following the Concord acquisition Yuanshan Music Royalty Fund Co., Ltd. assets in 2023 and Mojo Music & Media (also in 2023), Kroll’s report shows its valuation as consolidated $606.3 million.
“Kroll’s report stated that an independent third party valued the Concord catalog at $5.1 billion…”
Concord acquires Round Hill’s UK fund $468.8 million deal, meaning Kroll’s report indicates Concord paid About $137.5 mega Property of Mojo Music and Media.
Kroll’s report noted that an independent third party valued the Concord catalog at $5.1 billion, It considered the Round Hill and Mojo assets as well as “recently acquired single-artist catalog assets,” namely catalogs of highly successful Latin music artists and songwriters.
According to Kroll’s report, Concord’s catalog is valued at $4.2 billion As of December 31, 2023.
Concord’s latest acquisition follows a series of major M&A moves by the company, including the eight-figure acquisition of Australia’s Native Tongue (and associated expansion in Australia) in 2022, as well as the approximately $300 million acquisition of Phil Collins and Genesis Acquire music rights from members.
Last year, Concord announced the establishment of a joint venture label, PULSE Records, with the widely respected Pulse Music Group team, strengthening its ability to record music on the front lines. (Concord became a majority owner of Pulse Music Publishing in a deal worth more than $100 million in 2020). PULSE has had US and global success this year with Tommy Richman’s hit million baby (PULSE Records/ISO Supremacy).
In May, Concord officially exited the bidding war for the assets of Hipgnosis Songs Fund – leaving the global investment giant black stone As the winner of HSF’s high-stakes takeover battle. (The bidding war for HSF began in mid-April, when Concord launched a bid for HSF through Concord Chorus Ltd, with part of the funding provided by Apollo Global Management).
Concord, still majority-owned by its longtime backer State of Michigan Retirement Systems, began exploring a sale itself several years ago (hiring Goldman Sachs as an assistant).
The process resulted in an unnamed acquirer making a takeover offer of around $5 billion, but that price was not high enough for the company, which was only seeking “extraordinary” offers. Concord shut down the process and walked away.
Elsewhere in the music industry, in March, Kobalt confirmed that $266.5 million Backed by music royalties from more than 5,000 works by 66 authors through its first-ever asset-backed securitization (ABS) transaction.
Also in March, HarborView Equity Partners secured approx. US$500 million Debt financing through private securitization backed by its catalog of music royalties.global music business
