(CelebrityAccess) – Merck Mercuriadis’ Hipgnosis Songs Fund Ltd has reportedly secured a new roughly $188m revolving credit facility (RCF) from seven banks.
The facility refinances Hipgnosis’s roughly $81m RCF, originally lent by JP Morgan in August 2019, and is based on an independent valuation of Hipgnosis’ music catalogs, which currently include more than 11,000 songs.
Gabrielle Wong, of law firm Herbert Smith Freehills, which advised Hipgnosis on both RCF deals, said: “Successful completion of this debt raising in the midst of a global pandemic is a testament to the confidence of investors in the robustness of Hipgnosis’ business and the evolution of songs as a valuable asset class.
“We are delighted to have advised Hipgnosis on yet another significant transaction. It is exciting to work with such a dynamic client and I look forward to continue supporting Merck and his team as they expand their business and go from strength to strength.”
Björn Lindvall, COO of Hipgnosis, added: “We are very pleased to have been able to issue our first syndicated loan facility at incredibly good terms in these highly volatile markets whilst still being oversubscribed. I would like to thank Gabrielle and her team for their hard and diligent work, which in no small way was a determining factor in getting this deal across the finishing line in a successful way.”
Hipgnosis currently owns stakes in song catalogs created by the likes of Giorgio Tuinfort (David Guetta), Teddy Geiger (Shawn Mendes), The-Dream (Justin Bieber, Rihanna), Poo Bear (Chris Brown, Justin Bieber), Tricky Stewart (Rihanna, Beyoncé), TMS (Jess Glynne, Little Mix), Itaal Shur (Santana), Bernard Edwards (Chic), The Chainsmokers, Benny Blanco, Brittany Hazzard (aka Starrah), Richie Sambora (Bon Jovi) and more.
The company has reportedly spent more than $650m since its inception in 2018.
