Concord Raises Another $1.7 Billion Through Asset-Backed Security

Concord has raised $1.765 billion through an asset-backed security (ABS), the company formally announced on Tuesday (July 22), issuing a series of new five-year, seven-year and ten-year senior notes.

According to a press release, the “ten-year tranche was privately placed and represents the longest duration ABS issuance at scale in the music sector.” The notes are secured by Concord’s catalog of more than 1.3 million music copyrights, which includes songs by The Beatles, Beyonce, Bruno Mars, Daddy Yankee, Ed Sheeran, Michael Jackson, Pink Floyd, Rihanna, Taylor Swift and The Rolling Stones. This marks Concord’s fourth securitization offering.

Concord says its securitization catalog is valued at more than $5.1 billion and that the notes were rated A+ by KRA and A2 by Moody’s. The ABS transaction was structured by Apollo through its Capital Solutions business, along with affiliates ATLAS SP Partners and Redding Ridge Asset Management.

Proceeds from the fund, which had been previously reported, will be used to repay $1.65 billion Concord owes from its 2022 ABS and “refinance and extend its $109 million variable funding note,” the release states.

“As Concord continues to grow both our catalog and frontline roster, ensuring long-term access to institutional capital and continuing to build upon our strong financial foundation are crucial,” said Bob Valentine, CEO of Concord, in a statement. “ABS transactions like the one we just closed will remain a vital part of our growth strategy, allowing us to continue to lower our cost of capital while expanding our global capabilities in support of the artists and songwriters we serve. I am incredibly grateful to the Apollo team, who continue to provide customized solutions so that Concord can live out its mission to elevate the voices of artists around the world.”

“We are pleased to structure and lead this landmark ABS transaction for Concord, which represents a continuation of our long-term financing partnership and demonstrates Concord’s innovative approach to music securitization through the issuance of the industry’s first 10-year tranche,” added Apollo partner Michael Paniwozik. “We continue to be impressed by the quality and breadth of the actively managed catalog that Concord has built and look forward to supporting its journey for years to come.”

“It has been immensely rewarding to support Concord’s continued evolution leveraging the ABS structure that we established in 2022,” said Apollo MD Paul Sipio. “Since that time, Bob and team have made tremendous progress advancing the company’s growth strategy through several additive acquisitions. We believe the four transactions that we’ve executed with Concord to date reflect the differentiated nature of Apollo’s integrated platform, bringing together combined capabilities of Apollo, ATLAS SP, and Redding Ridge to provide tailored structured solutions.”

Apollo Global Security and ATLAS SP Securities acted as joint bookrunners for the ABS transaction. Redding Ridge Asset Management served as structuring agent, with the Bank of New York Mellon acting as trustee. Virtu Global provided valuation services and DLA Piper provided legal counsel for Concord and Milbank for Apollo affiliates.