Hipgnosis has completed its $1.47 billion master trust music rights asset-backed securities (ABS) deal.
Lyra Music Assets (Lyra 24-2) represents Hipgnosis Song Assets' second music royalty securitisation, after a $222 million issuance in 2022.
The latest ABS deal is backed by royalties from the $2.36 billion music rights portfolio acquired as part of Hipgnosis Songs Fund, which Blackstone took private in July. The UK music royalties investment trust comprises 138 catalogues across more than 45,000 songs.
The portfolio includes songs from the Red Hot Chili Peppers, Fleetwood Mac, Journey, The Chainsmokers, Shakira, Bon Jovi, 50 Cent and Eurythmics.
MUFG Securities was the structuring lead with Barclays, Goldman Sachs, Fifth Third Securities and SMBC Nikko as joint bookrunner. Blackstone Capital Markets served as a co-manager.
The notes are rated A- by KBRA and proceeds from the debt issuance will predominantly be used to repay existing debt in full and support future acquisitions.
Ben Katovsky, CEO of Hipgnosis, and Dan Pounder, CFO of Hipgnosis, said: “We are delighted to announce the successful completion of our second asset-backed securitisation, a significant milestone for Hipgnosis. This achievement not only reinforces the quality and strength of our music catalogue but also enables us to unlock new opportunities for growth and investment.
“Music rights continues to be a fast-growing investable asset class that we are excited to be a leader in as we stay firmly committed to supporting songwriters and artists, and enhancing the legacy and value of our songs through active song management.
“With this ABS refinancing completed, we will continue to work on expanding the investor base with further institutionalisation of the asset class leveraging Hipgnosis’ proprietary technology and data analytics platform across underwriting, monitoring and reporting.”
Qasim Abbas, European head of tactical opportunities, Blackstone, added: “This landmark transaction not only highlights the strength of Hipgnosis' exceptional catalogue but also reflects our capabilities in providing innovative financial solutions in support of their ongoing growth and success.
“Our partnership underscores the long term, sustainable value we see in music royalties, and we remain excited for the future.”
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