Concord Music Closes $850 Million in Financing for ‘Strategic Growth and Acquisitions’

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

In recent years the company has made top-dollar acquisitions for the catalogs of Latin music superstar Daddy Yankee for a reported $217 million; Genesis members Phil Collins, Tony Banks and Mike Rutherford for $300 million; the 150,000-song catalog of Round Hill Music for $468.8 million; and 30,000-song strong Mojo Music, among others.

The series, in senior notes backed by its catalog of music assets, marks the company’s third securitization offering and is cross-collateralized with the notes offered in 2022, which, according to the announcement, now make up the largest music-backed asset-backed securitization to date. These issuances “underscore Concord’s ongoing effort to strategically grow and monetize its music assets and position the company as a consequential force in the music industry,” the announcement continues.

The notes will be secured by music royalties from a pool of catalogs containing over 1 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, R.E.M., R.E.O. Speedwagon, and The Rolling Stones.

American asset firm Apollo, through its Capital Solutions business, Apollo Global Securities, together with its affiliate Redding Ridge Asset Management, structured the asset-backed securitization (ABS) and led an investor syndicate for the transaction. Atlas SP Securities, a division of Apollo Global Securities, LLC, acted as a joint bookrunner for the transaction. Proceeds from the issuance will be used to retire the private 2023-1 note issuance, 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 significant milestone for Concord and the global music industry as we close our third music ABS 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 manage a catalog with such a remarkable depth of artistic talent and cultural importance. We are grateful to our financing 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 keep investing in the music industry. As we grow to new heights, our focus continues to be squarely on our artists and the incredible art they create.”

Apollo’s Paul Sipio added, “Concord’s management has demonstrated exceptional vision in building a catalog that reflects the breadth and evolution of modern music, and we are pleased to work with Concord once again on this significant transaction,” said Bret Leas, Apollo Partner and Co-Head of Asset-Backed Finance. “By anchoring and structuring this ABS, we have continued to help Concord unlock the value of their extraordinary music catalog. We are proud to provide a tailored solution to support their success.”

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