SESAC Raises $889 Million in Whole Business Securitization
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SESAC Raises $889 Million in Whole Business Securitization
SESAC Music Group has closed on an $889 million bond sale through senior, five-year notes. The company’s performing rights division represents such songwriters as Kurt Cobain and Ariana Grande. The music services division provides services to songwriters, publishers, collective management organizations and digital service providers. The securitization received a BBB (sf) rating from Morningstar and was three-times oversubscribed, indicating strong confidence.
SESAC’s fourth securitization is a “whole business securitization” that is secured by SESAC’s assets and revenues, including its performing rights and music services businesses. Traditional securitizations are backed by specific assets, not the assets and operating revenue of an entire company. Most music companies’ securitizations — including those closed this year by Concord and HarbourView Equity Partners — are the traditional type backed by the rights to various music catalogs.
Following this securitization, SESAC has outstanding senior notes of approximately $1.1 billion.
The company’s performing rights division represents such songwriters as Kurt Cobain (Nirvana), Ariana Grande, Billie Joe Armstrong (Green Day) and Axl Rose (Guns N’ Roses). The music services division provides services to songwriters, publishers, collective management organizations and digital service providers. Through AudioSalad, the services division also provides metadata and media asset management, delivery and distribution services to artists and labels.
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The securitization received a BBB (sf) rating from Morningstar and was three-times oversubscribed, indicating strong confidence. Guggenheim Securities LLC, Barclays Capital Inc., and ING Financial Markets LLC acted as joint book runners, with Blackstone Securities Partners L.P. serving as co-manager. Guggenheim Securities LLC also served as the structuring agent, while Virtu Global Advisors, LLC provided valuation services. Legal counsel to SESAC was provided by Latham & Watkins.
Purchased by private equity giant Blackstone in 2017, SESAC had been attracting interested suitors at the end of 2024, sources told Billboard. Blackstone was said to have fielded offers from private equity firms that bid unsuccessfully on Global Music Rights, which was valued at $3.3 billion when TPG replaced Hellman & Friedman as majority owner in January.
Source: https://www.billboard.com/pro/sesac-raises-889-million-securitization/