NASHVILLE, Tenn.-Wednesday 19 August 2020 [ AETOS Wire ]
(BUSINESS WIRE)--
After receiving first-time corporate credit ratings of B1 and B+ from
Moody’s and S&P last month, Concord announced today that it has
closed on a $600 million term loan B debt offering which, in addition to
its existing $450 million revolving credit facility, provides the
company with access to over $1 billion of total debt financing, further
cementing its position as the world’s most significant independent music
and theatrical rights company.
The
term loan B offering, which was placed with 90 investment firms by J.P.
Morgan, was upsized from an initially proposed $400 million issuance
due to more than 6x oversubscription after a two-week marketing process.
Proceeds from the new debt will be used to partially pay down the
company’s revolving credit facility, allowing for significant additional
capital availability for future acquisitions and working capital.
Bob
Valentine, Concord’s CFO, remarked, “This highly successful debt
offering is further validation that institutional investors believe in
Concord’s long-term strategy of building one of the preeminent
independent music companies in the world. It also shows that those
investors are hungry to invest in timeless music content with global
appeal that can be legitimately accessed and enjoyed by consumers
everywhere, in more diverse and readily available ways than at any time
in history. We are especially appreciative of our financing partner of
over 20 years, J.P. Morgan, for their continued support in the evolution
of our company, and are thrilled to share yet another milestone with
them.”
“For
more than two decades J.P. Morgan has had the pleasure of working with
Concord and watching them evolve to become the preeminent independent
music company they are today,” said David Shaheen, Head of Entertainment
Industries and West Region for J.P. Morgan’s Corporate Client Banking
and Specialized Industries business. “Concord’s success is a testament
to the quality of their management and strength of sponsorship, we look
forward to helping them build on their numerous accomplishments.”
Concord
has increased its revenue nearly four-fold over the last five years,
due to organic growth and strategic acquisitions to which it has
committed over $1 billion since 2017. In January, Concord acquired a
substantial equity position in PULSE Music Group, one of today’s hottest
music publishers, signaling the company’s move into chart-focused
A&R. PULSE’s roster is responsible for four Hot 100 #1 hits this
year and includes Kehlani, Starrah, Ty Dolla $ign, BloodPop, Flo Milli
and Trevor Daniel whose new single “Falling” hit #1 at Top 40 Radio and
has been certified 2x Platinum by the RIAA. Last month, Concord signed
songwriting superstar Hillary Lindsey to an exclusive worldwide
co-publishing agreement with regard to her future works while also
acquiring an interest in her back catalog and forming a new joint
venture to develop upcoming country songwriters. Lindsey’s catalog
includes eleven #1 singles with Carrie Underwood as well as
chart-toppers for Luke Bryan, Lady A, Taylor Swift, Keith Urban and
more. And, just yesterday, Concord announced the purchase of the
publishing catalog of pop-rock behemoth Imagine Dragons, including four
singles that each hit 1 billion streams on Spotify among them the RIAA
Diamond single “Radioactive.”
“We
couldn’t be happier with the results that the J.P. Morgan team achieved
for us in this transaction. Their execution was flawless, and it is
very satisfying to see Concord’s hard work and strategic growth of the
past few years be so well-received by such a large group of
sophisticated financial institutions,” commented Concord CEO Scott
Pascucci.
These
2020 transactions follow Concord’s recent acquisitions of various
genre-defining recorded music and publishing companies such as Musart,
Fania, Independiente, Varese Sarabande, Victory Records and Sikorski
Music Publishing. Over the past three years, Concord has also created an
industry-leading theatricals licensing company, Concord Theatricals, by
combining The Rodgers and Hammerstein Organization, which it acquired
as part of its industry-transforming acquisition of Imagem in 2017, with
the iconic works of Andrew Lloyd Webber, and the Tams-Witmark and
Samuel French licensing houses.
DLA Piper represented Concord in this transaction.
ABOUT CONCORD
Concord is a private company funded by long-term institutional capital and members of Concord’s management team. https://concord.com
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Contacts
Kelly Voigt, kelly.voigt@concord.com, 629-401-3906