NEW YORK (CelebrityAccess) — Independent music publisher Kobalt Music Group announced the creation of its first asset-backed security (ABS) and a new $450 million Revolving Credit Facility.
According to Kobalt, the new asset-backed security, worth $266.5 million, is comprised of the rights to more than 5,000+ musical works from 66 writers across more than 50 catalogs.
Kobalt’s financial dealings follow their recently announced joint venture with Morgan Stanley. The transactions provide Kobalt with an infusion of more than $1 billion in capital to continue its growth.
ATLAS SP Partners was the sole structuring agent and joint bookrunner with Truist Securities on the Term ABS. The RFC was led by Truist to fully refinance existing indebtedness.
“This refinancing will fuel our growth initiatives and allow us to further fortify our position as an industry trailblazer. Along with the Francisco Partners transaction and Morgan Stanley joint venture, these transactions enable us to continue our investment into the business and our technology with far greater flexibility, simultaneously strengthening the best-in-class service we deliver to our songwriters and partners,” said Kobalt CFO Catrin Drabble. “Thanks to all of our partners for facilitating these transactions, recognizing the value of the portfolio and supporting Kobalt’s future vision.”
