Concord has successfully completed its latest asset-backed securities (ABS) transaction as the company raises capital US$850 million Debt financing through private securitization backed by its catalog of music rights.
The company said on Monday (October 28) that the transaction will “drive strategic growth and acquisitions[s]” and emphasized its “continued efforts to strategically develop and monetize its music assets and position the company as an important force in the music industry.”
Concord’s ABS transaction is securitized through royalties from its more than 1 million compositions, master recordings and related assets, including The Beatles, Carrie Underwood, Cheap Trick, Creed, Genesis, Kiss, Mike + The Mechanics, Otis Redding, Phil’s recordings include Collins, Plain White T’s, REM, REO Speedwagon and the Rolling Stones.
ApolloThrough its capital solutions business, Apollo Global Securities LLC and its affiliate Reading Ridge Asset Management, structured the asset-backed securitization and led the investor syndicate on the transaction.
ATLAS SP Securities, a subsidiary of Apollo Global Securities, LLC, served as joint bookrunner for the transaction.
As first reported by MBW, a report from Kroll Bond Ratings earlier this month showed that proceeds from Concord’s latest ABS deal were used for acquisitions $217.3 million From the catalog of “a highly successful Latin music artist and songwriter.”
The artist was later identified by Concord as daddy yankeepuerto rican superstar The final Tour of Spain world tour produced an estimated $198 million 2022.
harmony Acquired part of the reggae star’s music publishing and recorded music catalog, including the rights to his own hit songs, including Rest time, gas, and calmly, plus his featured artist role Slowly.
In addition, the acquisition also covers certain name, image and likeness (NIL) rights.
Kroll’s report calls $850 million ABS deal an offering Series 2024-1 Notes. This marks the third series of notes issued as part of a wider program $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 called at the time “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 released by Kroll, the proceeds from the latest transaction (2024-1 Series Notes), will 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 noted that “additional collateral was provided for the securitization” in July 2024 after Concord acquired the company. 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.
Concord acquires Round Hill’s UK fund $468.8 million deal, meaning Kroll’s report suggests Concord paid approx. $137.5 mega Property of Mojo Music and Media.
According to the Kroll Report, independent third parties rated the Concord catalog as: $5.1 billion.
Photo credit: Elena Goss
“This transaction represents another important milestone for Concord and the global music industry as we complete our third Music ABS service and continue our strategic efforts to promote and support the artists and writers in our catalog.”
Bob Valentine, Concord
“This transaction represents another important milestone for Concord and the global music industry as we complete our third Music ABS service and continue our strategic efforts to elevate and support the artists in our catalog,” said Concord CEO Bob Valentine. and writers.
“We are proud to steward a catalog with such extraordinary depth of artistic talent and cultural importance.
“We are grateful to our financing partners Apollo and ATLAS SP for helping us create a long-term capital structure that supports our growth and strengthens our financial foundation, allowing us to continue investing in the music industry. As we grow to new heights, our The focus remains on our artists and the incredible art they create.
“Concord’s management has shown extraordinary vision in building a catalog that reflects the breadth and evolution of modern music, and we are pleased to be working with Concord again on this significant transaction.”
Brett Lees “Apollo”
Bret Leas, Partner and Co-Head of Asset-Backed Financing at Apollo, said: “Concord management has shown exceptional vision in building a catalog that reflects the breadth and evolution of modern music, and we are delighted to be working with Concord again on this significant transaction.”
“By anchoring and building on ABS, we continue to help Concord unlock the value of its extraordinary music catalog.”
Paul Scipio, Apollo
Apollo’s Paul Sipio added: “By anchoring and building ABS, we continue to help Concord unlock the value of their extraordinary music catalog. We are proud to provide tailor-made solutions to support their success.
FTI Consulting is acting as the back-up manager for the transaction, with Bank of New York Mellon serving as trustee. Virtu Global Advisors, LLC provided valuation services, while DLA Piper provided legal advice to Concord and Milbank LLP provided legal advice to Apollo affiliates.
Elsewhere, in July, Apollo confirmed it was a major investor in a company US$700 million “Capital Solutions” Sony Music Group.
Apollo said this “capital solution” is designed to fund “investments in the music industry”.global music business
