Concord, one of the world’s largest independent music companies, has successfully closed a new round of $850 million in funding to “fuel strategic growth and acquisitions.”

In recent years, the company has made significant acquisitions for catalogs of Daddy Yankee, Latin music superstar for a declared amount of $217 million; Genesis members Phil Collins, Tony Banks and Mike Rutherford for $300 million; Round Hill Music’s catalog of 150,000 songs for $468.8 million; and Mojo Music, with 30,000 songs, among others.

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The series, in senior notes backed by its catalog of music assets, marks the company’s third securitization offering and benefits from a cross-collateralization with the notes offered in 2022, which, according to the announcement, now constitute the largest securitization offer backed by musical assets. securitization to date. These broadcasts “underscore Concord’s ongoing efforts to strategically grow and monetize its music assets and position the company as a significant force in the music industry,” the announcement continued.

Ratings will be backed by music royalties from a catalog pool containing more than a million songs, including hits recorded by The Beatles, Carrie Underwood, Cheap Trick, Creed, Genesis, Kiss, Mike + The Mechanics, Otis Redding, Phil Collins, Plain. White T’s, REM, REO Speedwagon and the Rolling Stones.

US asset firm Apollo, through its Capital Solutions business, Apollo Global Securities, and its subsidiary Redding Ridge Asset Management, structured the asset-backed securitization (ABS) and led a syndicate of investors for the transaction. Atlas SP Securities, a division of Apollo Global Securities, LLC, acted as joint bookrunner for the transaction. Proceeds from the offering will be used to retire the private offering of 2023-1 notes, fund additional acquisitions and support Concord’s continued growth, according to the announcement.

Concord’s catalog is valued at more than $5 billion.

“This transaction represents another important milestone for Concord and the global music industry as we close our third ABS music offering, continuing our strategic efforts to elevate and support the artists and writers in our catalog,” said Bob Valentine, CEO of Concord. “We are proud to curate a catalog with such depth of artistry and cultural significance. We are grateful to our financial partners, Apollo and ATLAS SP, for helping us create a long-term capital structure that supports our growth and strengthens the financial foundation that allows us to continue investing in the music industry. As we reach new heights, we continue to focus squarely on our artists and the incredible art they create.

Paul Sipio of Apollo added: “Concord management has demonstrated exceptional vision in creating a catalog that reflects the breadth and evolution of modern music, and we are thrilled to work with Concord again on this important transaction,” said Apollo Partner and Co. Bret Leas. -Responsible for Asset-Backed Financing. “By anchoring and structuring this ABS, we have continued to help Concord unlock the value of its extraordinary musical catalog. We pride ourselves on providing a tailored solution to support their success.

FTI Consulting served as acting manager for the transaction, with Bank of New York Mellon acting as trustee. Virtu Global Advisors, LLC provided valuation services, while DLA Piper provided legal advice for Concord and Milbank LLP for Apollo subsidiaries.

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