Financial Affairs

Concord refinances debt: Indie raises $ 600 million for successful, oversubscribed term loan

The new debt and the expanded gun, according to sources, were used to repay some $ 600 million of existing debt in the form of an existing term loan of $ 98 million; and repay $ 502 million of revolving debt contracted before this facility was reduced and amended with new ratios in its financial commitments.

Concord, which made the debt offer as Alchemy Copyrights LLC, now has $ 69 million drawn from the $ 450 million gun, leaving $ 381 million available, plus cash on hand. . At the end of its fiscal year on March 31, that totaled $ 60 million, according to Moody.

The company, 93% owned by the Michigan State Retirement System – the rest apparently owned by company management – specializes in investing in iconic catalogs on the publishing side, proven catalog sellers on the side. recorded music; as well as having a diverse theatrical rights company.

“We could not be more pleased with the results the JP Morgan team achieved for us in this transaction,” said the CEO of Concord. Scott pascucci said in a statement about the transaction. “Their execution has been flawless, and it is very satisfying to see Concord’s hard work and strategic growth over the past few years so well received by such a large group of sophisticated financial institutions.”

Concord reported revenue of $ 448 million for the fiscal year ended March 31, according to Moody’s rating report.

Looking at Concord’s annual turnover, it stands at around $ 201 million for the label, $ 170 million for the publishing operation and $ 77 million for the cinema arm, which in addition to R&H Theatricals, also includes the Andrew Lloyd Webber collection and the Tams-Witmark catalog. , which includes works by Cole Porter, George & Ira Gershwin and Cy Coleman.

Spreading the revenue another way, roughly $ 318 million comes from US operations, while $ 129 million comes from international operations. Additionally, the report states that the catalog accounts for 87% of revenue, so if you consider recorded music and publishing revenue of $ 372 million, that means the catalog generates around $ 323 million for the catalog and current versions approximately $ 48 million.

In the April 2019 issue of Pensions and investments – a trade magazine that follows institutional investors – Michigan Assistant Treasurer Jon Braeutigam was quoted as saying that Concord had a stock valuation of around $ 1.8 billion.

Concord’s valuation has undoubtedly been boosted by more than $ 1 billion in acquisitions and the organic growth Concord has achieved since 2017. In fact, since the Michigan Assistant State Treasurer disclosed this Equity valuation in 2019, when debt, subsequent acquisitions, organ growth investments and maybe even more equity investments are taken into account, the overall business value of the company stands between $ 3 billion and $ 3.5 billion, according to sources. These acquisitions included the purchase of Imagem, which includes the Rodgers and Hammerstein organization; a majority position in Pulse Music Group, and the recently announced Imagine the Dragons edition catalog, the company says. Already, the company’s music publishing division represents more than 400,000 songs; while the recorded music operation owns catalogs from iconic labels such as Stax, Fantasy and Rounder, as well as the Kidz Bop brand, publishes around 100 albums per year and has a catalog of over 16,000 albums.

“For over two decades, JP Morgan has had the pleasure of working with Concord and watching them evolve into the preeminent independent music company they are today,” responsible for corporate banking and specialty industries. JP Morgan, Head of Entertainment Industries and Western Region. David Shaheen said in a statement. “Concord’s success is a testament to the quality of their management and the strength of their sponsorship, we look forward to helping them build on their many accomplishments.”