HIPGNOSIS CLOSES $1.5B ASSET-BACKED TRANSACTION

With the help of Blackstone, Hipgnosis has raised nearly $1.5b in debt financing as part of an asset-backed securities transaction dubbed Lyra 24-2.

The ABS is undergirded by royalties from Hipgnosis Song Fund, the 45k-strong asset featuring works by Fleetwood Mac, Journey and Shakira, among others.

Per Hipgnosis, the money will be used "to repay existing debt in full and support future acquisitions." Blackstone previously bought the HSF catalog for $1.6b from the fund's shareholders.

Blackstone and Hipgnosis are calling the 25-investor deal "one of the most diversified ABS issuances for music rights to date."

"With this ABS refinancing completed, we will continue to work on expanding the investor base with further institutionalization of the asset class leveraging Hipgnosis’ proprietary technology and data-analytics platform across underwriting, monitoring and reporting," said Hipgnosis CEO Ben Katovsky and CFO Dan Pounder in a joint statement. “This landmark transaction not only highlights the strength of Hipgnosis’ exceptional catalog but also reflects our capabilities in providing innovative financial solutions in support of their ongoing growth and success."

Seconded Blackstone European Head of Tactical Opportunities Qasim Abbas, “Our partnership underscores the long-term, sustainable value we see in music royalties."