Milbank LLP advised Apollo’s (NYSE: APO) Capital Solutions business and affiliates Redding Ridge Asset Management and ATLAS SP Partners in connection with a $1.765 billion notes issuance for music company Concord. The asset-backed securitization (ABS), which consisted of a series of new five-year, seven-year and ten-year senior notes, is secured by Concord’s catalog of over 1.3 million music copyrights. The ten-year tranche was privately placed and is notably the longest duration ABS issuance at scale in the music sector. This issuance, which is Concord’s fourth securitization, is the largest and longest tenured asset-backed term securitization of music rights to date.
Based in Nashville, Tennessee, Concord is the world’s leading independent music company, supporting more than 125,000 artists and songwriters whose works are licensed, marketed and performed globally. The Concord music catalog used in connection with this ABS consists of songs and recordings of globally recognizable artists including The Beatles, Beyoncé, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Imagine Dragons, John Fogerty, Kiss, Michael Jackson, Otis Redding, Phil Collins, Pink Floyd, R.E.M., Rihanna, Rodgers & Hammerstein, Taylor Swift and The Rolling Stones.
Concord’s securitization catalog is valued at more than $5.1 billion. Proceeds from the issuance will be used to repay the company’s $1.65 billion 2022-1 note series and refinance and extend its $100 million variable funding note.
The Milbank team advising Apollo was led by Structured Credit partner and practice group leader Sean M. Solis, along with special counsel Tony Mechcatie, associate Konstantina Katsimeni and law clerk Nick Isaacs.
“It has been an honor to continue to support Apollo in this series of securitizations for Concord, including this latest transaction, structured with first-of-its-kind features that we were able to collaborate on,” commented Mr. Solis. The deal further underscores Milbank’s place leading on some of the most notable securitizations, including within the music industry. As reported in a press release issued by Concord, the transaction was more than three times oversubscribed, reflecting robust investor demand supporting Concord’s ABS strategy. The successful closing of this transaction will allow Concord to move forward toward its goal of fueling continued growth.
