Concord, a major independent music company, has closed $1.765 billion in sales of Asset-Backed Securities (ABS). This amount is based on the projected growth in value of Concord’s catalog, which includes music from major stars such as The Beatles, Beyoncé, Michael Jackson, Rodgers & Hammerstein, Taylor Swift, and The Rolling Stones.
The sale:
The sale consists of five-year, seven-year, and ten-year senior notes, with the ten-year being the longest duration for a bond in the music sector.
This is Concord’s fourth securitization offering.
It represents the largest sum delivered over the longest period of time for an asset-backed term securitization of music rights.
Concord said the sale is intended to “fuel continued growth.”
Concord’s catalog value:
Concord’s total securitization value is over $5.1 billion.
The notes received top marks from credit rating agencies, including A+ from KBRA and A2 from Moody’s, meaning purchasers are very likely to see their investment pay off as planned.
What they said:
Bob Valentine, CEO of Concord: “As Concord continues to grow both our catalog and frontline roster, ensuring long-term access to institutional capital and continuing to build upon our strong financial foundation are crucial. ABS transactions like the one we just closed will remain a vital part of our growth strategy, allowing us to continue to lower our cost of capital while expanding our global capabilities in support of the artists and songwriters we serve.”
