Concord Closes $850 Million In Asset-Backed Securitization

These issuances backs Concord’s ongoing effort to strategically grow and monetize its music assets and cement the company as a meaningful force in the industry. The notes will be acquired by music royalties from a range of catalogs containing over a million songs, including 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., REO Speedwagon and The Rolling Stones.

Apollo, through its Capital Solutions business, Apollo Global Securities, LLC, and its affiliate Redding Ridge Asset Management, built the asset-backed securitization as well as led an investor syndicate for the transaction. ATLAS SP Securities, a division of Apollo Global Securities, LLC, was a joint bookrunner for the deal. Proceeds from the issuance will be used to retire the private 2023-1 note issuance, fund additional acquisitions and assist in 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,” says Bob Valentine, Concord CEO. “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.”

Valued at more than five billion dollars, the catalog results in an approximate 52% loan-to-value ratio for the offering, and the notes are ranked A+ by KBRA and A2 by Moody’s. Concord’s new five-year notes issuance is backed by an actively-managed catalog of more than a million different music assets across a wide range of genres, including over 300 Grammy Award winners and more than 400 recordings with RIAA Gold, Platinum, multi-Platinum and Diamond 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,” shares Bret Leas, Apollo Partner & 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,” adds Apollo’s Paul Sipio.

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 was legal counsel for Concord and Milbank LLP for Apollo affiliates.