October 28, 2024
Concord Closes $850 Million ABS to Fuel Strategic Growth and Acquisition
This Marks the Company’s Third Securitization Offering, Strengthening its Position in the Music Industry
NASHVILLE AND NEW YORK – October 28, 2024 – Concord, the world’s leading independent music company, has successfully closed a new series of $850 million in senior notes backed by a diverse catalog of music assets. This marks Concord's third securitization offering and is cross-collateralized with the notes offered in 2022, which, taken together, 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 notes will be secured by music royalties from a pool of catalogs containing over one million songs, including iconic works 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.
Apollo (NYSE: APO), through its Capital Solutions business, Apollo Global Securities, LLC, and 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.
"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."
The catalog is valued at more than $5 billion, resulting in an approximate 52% loan-to-value ratio for the offering, and the notes are rated A+ by KBRA and A2 by Moody’s. Concord’s new 5-year notes issuance is backed by an actively managed catalog of more than 1 million unique music assets spanning a wide range of genres, including over 300 GRAMMY Award winners and more than 400 recordings with Gold, Platinum, Multi-Platinum, and Diamond Recording Industry Association of America (RIAA) certifications.
"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 helped Concord unlock the value of their extraordinary music catalog. We are proud to provide a customized solution to support their continued success,” added Paul Sipio, Principal at Apollo Global Management.
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.
CONCORD is the world’s leading independent music company. The Company supports more than 125,000 artists and songwriters whose works are licensed, marketed, and performed globally. Concord's growing catalog of 1.3 million songs, compositions, sound recordings, films, plays, and musicals is one of the most impactful and culturally relevant collections of creative rights in history.
Concord is headquartered in Nashville with additional offices in Los Angeles, New York, London, Berlin, Melbourne, and Miami.
CONCORD LABEL GROUP embodies a philosophy that places artists at the center of their own creative journey. With a global team committed to providing unparalleled resources and personalized support, Concord Label Group boasts a diverse roster across seven active labels; Concord Records, Easy Eye Sound, Fearless Records, Loma Vista Recordings, PULSE Records, Rounder Records, Concord Theatricals Recordings, and Craft Recordings which manages legendary catalog labels such as Stax, Fania, Prestige, Telarc, and Varèse Sarabande among others. Its portfolio of master recordings contains 300,000 active tracks by some of the world’s most influential artists who have earned over 300 GRAMMY Awards and more than 400 RIAA certifications.
Concord Label Group is also home to the KIDZ BOP brand, a global phenomenon beloved by kids and families, with 24 million albums sold, 11 billion streams, and a legacy of innovation in music, videos, consumer products, and live tours.
CONCORD MUSIC PUBLISHING represents over one million copyrighted works by the world’s most celebrated songwriters, composers, and lyricists. Spanning nearly two centuries of song, through a vast array of genres and territories, Concord Music Publishing also supports a diverse group of contemporary creators producing important and popular new songs and musical works by offering individualized creative support through its A&R, Synchronization, and Marketing teams and diligent administration by its in-house Copyright, Licensing, Income Tracking, and Royalty departments. Concord Music Publishing is home to the world’s leading classical music publisher, Boosey & Hawkes, and operates exclusive joint ventures with top pop music publisher, Pulse Music Group and Hillary Lindsey’s Hang Your Hat Music.
CONCORD THEATRICALS is the world’s most significant theatrical company, comprising the catalogs of Rodgers & Hammerstein Theatricals, Samuel French, Tams-Witmark, and The Andrew Lloyd Webber Collection, plus dozens of new signings each year. Its unparalleled roster includes the work of Irving Berlin, Agatha Christie, George & Ira Gershwin, Marvin Hamlisch, Lorraine Hansberry, Kander & Ebb, Tom Kitt, Ken Ludwig, Marlow & Moss, Lin-Manuel Miranda, Anaïs Mitchell, Dominique Morisseau, Cole Porter, Rodgers & Hammerstein, Thornton Wilder, and August Wilson. It is the only company providing truly comprehensive services to the creators and producers of plays and musicals, including theatrical licensing, music publishing, script publishing, cast recording, and first-class production.
CONCORD ORIGINALS is the film and TV division of music and theatre juggernaut, Concord. The team develops and produces stories anchored by Concord’s artists, music and theatrical works, taking a proactive, narrative-driven approach to each project, and partnering with A-list storytellers to produce premium content for screen and beyond. The division’s slate is comprised of feature films, series, documentaries, and podcasts and its partners include HBO, Paramount, Netflix, Skydance, Telemundo Streaming Studios, Audible, Nuyorican Productions, White Horse Pictures, 3AD, Sky Arts, and many others.