Concord has raised $1.765 billion in an asset-backed securities transaction.
The 10-year tranche of the senior notes was privately placed and represents the longest duration ABS issuance at scale in the music sector.
The notes are secured by Concord’s catalogue of more than 1.3 million music copyrights, featuring the songs and recordings of artists such as The Beatles, Beyonce, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Imagine Dragons, John Fogerty, Kiss, Michael Jackson, Otis Redding, Phil Collins, Pink Floyd, REM, Rihanna, Rodgers & Hammerstein, Taylor Swift and the Rolling Stones.
The latest issuance represents Concord’s fourth securitisation offering and the largest and longest tenured asset-backed term securitisation of music rights to date.
Concord’s securitisation catalogue is valued at more than $5.1 billion and the notes were rated A+ by KBRA and A2 by Moody’s.
Apollo, through its Capital Solutions business and affiliates Atlas SP Partners and Redding Ridge Asset Management, structured the ABS transaction and formed an investor syndicate led by Apollo-managed funds and affiliates.
Proceeds from the issuance will be used to repay the company’s $1.65 billion 2022-1 note series and refinance and extend its $100 million variable funding note.
“The transaction was more than three times oversubscribed, reflecting robust investor demand underpinning Concord’s ABS strategy,” said a statement.
“As Concord continues to grow both our catalogue and frontline roster, ensuring long-term access to institutional capital and continuing to build upon our strong financial foundation are crucial,” said Bob Valentine, CEO of Concord. “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. I am incredibly grateful to the Apollo team, who continue to provide customised solutions so that Concord can live out its mission to elevate the voices of artists around the world.”
“We are pleased to structure and lead this landmark ABS transaction for Concord, which represents a continuation of our long-term financing partnership and demonstrates Concord’s innovative approach to music securitisation through the issuance of the industry’s first 10-year tranche,” said Apollo partner Michael Paniwozik. “We continue to be impressed by the quality and breadth of the actively managed catalogue that Concord has built and look forward to supporting its journey for years to come.”
“It has been immensely rewarding to support Concord’s continued evolution leveraging the ABS structure that we established in 2022,” said Apollo managing director Paul Sipio. “Since that time, Bob and team have made tremendous progress advancing the company’s growth strategy through several additive acquisitions. We believe the four transactions that we’ve executed with Concord to date reflect the differentiated nature of Apollo’s integrated platform, bringing together combined capabilities of Apollo, Atlas SP, and Redding Ridge to provide tailored structured solutions.”
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