Don’t expect Concord’s spending spree to stop any time soon – the publishing and recorded music powerhouse has just raised another $600 million (£454m).
That money came via a term loan B debt offering with 90 investment firms, brokered by JP Morgan, which was upsized from $400m (£303m) after it was more than six times over-subscribed.
Concord – which has just, as Music Week reported earlier in the week, invested in Imagine Dragons’ publishing catalogue – also has access to a $450m (£341m) revolving credit facility, meaning it has access to over $1 billion (£757m) of total debt financing.
Concord says it will use the proceeds to partially pay down its credit facility and to ensure capital is available for future acquisitions. That will come in handy in the increasingly competitive publishing investment market, where Concord competes with the likes of Hipgnosis, Primary Wave and Kobalt Capital.
“This highly successful debt offering is further validation that institutional investors believe in Concord’s long-term strategy of building one of the preeminent independent music companies in the world,” said Concord CFO Bob Valentine. “It also shows that those investors are hungry to invest in timeless music content with global appeal that can be legitimately accessed and enjoyed by consumers everywhere, in more diverse and readily available ways than at any time in history. We are especially appreciative of our financing partner of over 20 years, JP Morgan, for their continued support in the evolution of our company, and are thrilled to share yet another milestone with them.”
Concord says it has increased its revenue by nearly 400% over the last five years, via a series of high profile acquisitions, deals and equity stake purchases, including deals with Pulse Music Group, Hillary Lindsey, Independiente and Victory Records.
Last year, Music Week exclusively revealed Concord’s plans to expand its recorded music division in the UK. The company also bought independent publishing giant Imagem in 2017 and runs a huge theatrical music division, Concord Theatricals.
Concord also says it has secured first-time corporate credit ratings of B1 and B+ from Moody’s and S&P.
“We couldn’t be happier with the results that the JP Morgan team achieved for us in this transaction,” said Concord CEO Scott Pascucci. “Their execution was flawless, and it is very satisfying to see Concord’s hard work and strategic growth of the past few years be so well-received by such a large group of sophisticated financial institutions.”
“For more than two decades JP Morgan has had the pleasure of working with Concord and watching them evolve to become the preeminent independent music company they are today,” said David Shaheen, head of entertainment industries and West region for JP Morgan’s corporate client banking and specialised industries business. “Concord’s success is a testament to the quality of their management and strength of sponsorship, we look forward to helping them build on their numerous accomplishments.”
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