Hipgnosis Secures $1.47B Music Rights Deal, Expands Portfolio After Blackstone Acquisition
Hipgnosis has completed a $1.47 billion asset-backed securitization (ABS), marking one of the largest music rights deals in recent history.
white elephant with HIPGNOSIS text logo
The securitization is backed by royalties from a 45,000-track catalog featuring prominent artists like Neil Young, Christine McVie, Rodney Jerkins, and Dierks Bentley. This move follows Blackstone's successful $1.6 billion bid to take Hipgnosis Songs Fund private earlier this year.
Key details of the securitization:
- Structured by MUFG Securities
- Received an A- rating from KBRA
- Attracted 25 diverse investors
- Will be used to clear existing debt and fund future acquisitions
The deal represents one of the most diversified ABS issuances for music rights to date, according to company executives. Hipgnosis CEO Ben Katovsky and CFO Dan Pounder stated they plan to expand their investor base and leverage their proprietary technology for future opportunities.
This refinancing positions Hipgnosis to resume catalog acquisitions, which had been limited due to previous debt constraints. The company, now fully backed by Blackstone, aims to continue its expansion in the increasingly competitive music rights market.
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