MUFG Underwrites Landmark Music Rights Asset-Backed Securities Deal

Paul, Weiss advised MUFG Securities as lead underwriter in a $1.47 billion music asset-backed securities deal by Blackstone-owned Hipgnosis, a UK-based leading music rights investment and management company. The deal is backed by royalties from Hipgnosis Songs Fund's $2.36 billion, 45,000-song music rights portfolio acquired by Blackstone in July, which includes iconic songs from the Red Hot Chili Peppers, Fleetwood Mac, Journey, The Chainsmokers, Shakira, Bon Jovi, 50 Cent and Eurythmics, among others. The order book represents one of the most diversified asset-backed securities issuances for music rights to date.

Barclays, Goldman Sachs, Fifth Third Securities and SMBC Nikko served as joint bookrunners in the transaction, and Blackstone Capital Markets served as a co-manager. Proceeds from the issuance will be used predominantly to repay existing debt in full and support future acquisitions.

The Paul, Weiss team was led by corporate partner Robert Zochowski and counsel Mikhel Schecter, and included partners Christodoulos Kaoutzanis, Charles Pesant and Aaron Schlaphoff and counsel Hilary Christian; tax partner Matthew Jordan and counsel Christina Cerrito; intellectual property partner John Patten; restructuring partner Kyle Kimpler; and executive compensation counsel Jake Glazeski.