Blackstone Leads Landmark Music ABS Transaction for Hipgnosis

Hipgnosis completes $1.47 billion music ABS deal, successfully pricing one of the largest-ever music royalty securitisations.

LONDON, UK - Hipgnosis, a leading music rights investment and management company, today announced the successful completion of a $1.47 billion master trust music rights asset-backed securities (ABS) deal, Lyra 24-2.

This landmark transaction represents Hipgnosis Song Assets' second music royalty securitisation, after a $222 million issuance in 2022. The 2024 deal is backed by royalties from the $2.36 billion music rights portfolio acquired as part of the take-private of Hipgnosis Songs Fund ("SONG"), a UK music royalties investment trust, which comprises 138 catalogues across more than 45,000 songs. The portfolio is one of the highest quality, most diversified, seasoned, publishing-led portfolios at scale in the market, including iconic songs from the Red Hot Chili Peppers, Fleetwood Mac, Journey, The Chainsmokers, Shakira, Bon Jovi, 50 Cent and Eurythmics.

Blackstone has been investing in the music royalties asset class since 2021, and in July 2024, with the SONG transaction, completed one of the largest music take-privates ever, demonstrating continued and strong conviction in the asset class.

MUFG Securities was the structuring lead with Barclays, Goldman Sachs, Fifth Third Securities and SMBC Nikko as joint bookrunner. Blackstone Capital Markets served as a co-manager.

With 25 investors, the order book represents one of the most diversified ABS issuance for music rights to date. The notes are rated A- by KBRA and proceeds from issuance will predominantly be used to repay existing debt in full and support future acquisitions.

Ben Katovsky, Chief Executive Officer of Hipgnosis, and Dan Pounder, Chief Financial Officer of Hipgnosis, said: "We are delighted to announce the successful completion of our second asset-backed securitisation, a significant milestone for Hipgnosis. This achievement not only reinforces the quality and strength of our music catalogue but also enables us to unlock new opportunities for growth and investment.

"Music rights continues to be a fast-growing investable asset class that we are excited to be a leader in as we stay firmly committed to supporting songwriters and artists, and enhancing the legacy and value of our songs through active song management.

"With this ABS refinancing completed, we will continue to work on expanding the investor base with further institutionalisation of the asset class leveraging Hipgnosis' proprietary technology and data analytics platform across underwriting, monitoring and reporting."

Qasim Abbas, European Head of Tactical Opportunities, Blackstone, added: "This landmark transaction not only highlights the strength of Hipgnosis' exceptional catalogue but also reflects our capabilities in providing innovative financial solutions in support of their ongoing growth and success.

"Our partnership underscores the long term, sustainable value we see in music royalties, and we remain excited for the future."

FTI Consulting served as the backup manager for the transaction, with Citibank acting as trustee. Virtu Global Advisors, LLC provided valuation services, while Latham & Watkins provided legal counsel for the issuer and Paul Weiss, Rifkind, Wharton & Garrison for the noteholders.

About Hipgnosis
Hipgnosis is a leading music rights investment and management company. Founded in 2018, Hipgnosis owns and manages a portfolio of over 45,000 songs, from more than 145 catalogues, including many of the most successful and culturally important songs of all time. We create value by enhancing the legacy of our songs, optimising revenue generation, developing our audience and advocating on behalf of songwriters.

About Blackstone
Blackstone is the world's largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1.1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

Media Contacts

Hipgnosis
Giles Croot
+44 (0)20 4542 1511
[email protected]

The Outside Organisation
Alan Edwards / Nick Caley
+44 (0)7711 081 843

Blackstone
Rebecca Flower
+44 7918 360372
[email protected]

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