A live performance from the Plain White T’s, one of the many acts who have recorded music featured in the over million-song catalog of Concord. Photo Credit: Justin Higuch
Concord has officially issued another $850 million in senior notes secured by royalties from all manner of commercially prominent works.
Nashville-headquartered Concord today confirmed the close of its third securitization, which we previously highlighted earlier in October. At the time of this initial coverage, however, the focus was largely on a $217.3 million catalog purchase bankrolled by the notes.
Though Concord didn’t immediately disclose the exact assets involved, higher-ups subsequently elaborated that the play encompassed a substantial portion of Daddy Yankee’s body of work.
All told, the five-year notes are said to be backed by “royalties from a pool of catalogs containing over one million songs,” recorded by the likes of the Beatles, Phil Collins, Genesis, and many others.
Furthermore, with its overall music IP valuation now billed at approximately $5.1 billion, Concord hasn’t hesitated to spell out that “additional acquisitions” yet could be in the cards for the just-obtained capital.
Also forthcoming (albeit not directly acknowledged in Concord’s official release) is a new California office for the company, which is set to relocate its Golden State division from Los Angeles to Beverly Hills sometime during Q3 2025, according to Connect CRE.
That lease will cover a 32,241-square-foot space, including a penthouse and the entire sixth floor of the 110,000-square-foot building at hand, per the mentioned source.
Long allied with Apollo (NYSE: APO), Concord tapped the latter’s Apollo Global Securities unit to structure and lead an investor syndicate for the securitization, higher-ups communicated. FTI Consulting was the transaction’s “backup manager,” Concord relayed as well.
In a statement, Concord head Bob Valentine touted the securitization as “another significant milestone,” thanked Sony Music-partnered Apollo “for helping us create a long-term capital structure that supports our growth,” and emphasized a continued focus “on our artists and the incredible art they create.”
Meanwhile, Concord itself described the securities as one component of an “ongoing effort to strategically grow and monetize its music assets and position the company as a consequential force in the music industry.”
Moving forward, it’ll be interesting to see exactly which moves come with that “consequential force” push. As many will recall, Concord didn’t ultimately purchase Hipgnosis Songs Fund, but it did submit multiple bids for the far-reaching collection of music IP.
Additionally, the business’s Mojo Music & Media and Round Hill buyouts brought a cumulative total of $606.3 million worth of music IP into the fold, a KBRA analysis revealed.