SESAC Music Group has closed on an $889 million bond sale via senior, five-year notes, the corporate introduced Thursday (July 31).
SESAC’s fourth securitization is a “complete enterprise securitization” that’s secured by SESAC’s belongings and revenues, together with its performing rights and music providers companies. Conventional securitizations are backed by particular belongings, not the belongings and working income of a whole firm. Most music firms’ securitizations — together with these closed this 12 months by Harmony and HarbourView Fairness Companions — are the standard sort backed by the rights to numerous music catalogs.
Following this securitization, SESAC has excellent senior notes of roughly $1.1 billion.
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The corporate’s performing rights division represents such songwriters as Kurt Cobain (Nirvana), Ariana Grande, Billie Joe Armstrong (Inexperienced Day) and Axl Rose (Weapons N’ Roses). The music providers division gives providers to songwriters, publishers, collective administration organizations and digital service suppliers. By means of AudioSalad, the providers division additionally gives metadata and media asset administration, supply and distribution providers to artists and labels.
The securitization obtained a BBB (sf) score from Morningstar and was three-times oversubscribed, indicating robust confidence. Guggenheim Securities LLC, Barclays Capital Inc., and ING Monetary Markets LLC acted as joint guide runners, with Blackstone Securities Companions L.P. serving as co-manager. Guggenheim Securities LLC additionally served because the structuring agent, whereas Virtu International Advisors, LLC offered valuation providers. Authorized counsel to SESAC was offered by Latham & Watkins.
Purchased by non-public fairness big Blackstone in 2017, SESAC had been attracting suitors on the finish of 2024, sources told Billboard. Blackstone was stated to have fielded affords from non-public fairness corporations that bid unsuccessfully on International Music Rights, which was valued at $3.3 billion when TPG replaced Hellman & Friedman as majority owner in January.