After Several Major Catalog Acquisitions, Hipgnosis Reloads With Expanded Credit Facility

After Several Major Catalog Acquisitions, Hipgnosis Reloads With Expanded Credit Facility

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LONDON (CelebvrityAccess) — After several high-profile catalogue acquisitions, Merck Merck Mercuriadis pure play music investment vehicle the Hipgnosis Song Fund Limited has recapitalized with an extension to their line of credit.

According to a statement from Hipgnosis, a syndicated group of lenders facilitated by JPMorgan has increased a revolving credit facility from $400 million to $600 million.

The expanded credit line will be used in line with Hipgnosis’ proposed financing strategy and investment policy, with total borrowing limited to 30% of the company’s net asset value.

Additionally, Hipgnosis can request an additional $150 million through the credit facility with certain conditions.

As well, Hipgnosis’ creditors also relaxed a previously imposed LIBOR floor used to calculate interest payments, lowing the cost of Hipgnosis’ cost of debt.

Founded in 2018 by veteran talent manager Merck Mercuriadis, Hipgnosis has raised more than £1 through its initial public offering to acquire ‘evergreen’ music IP with an eye towards allowing investors to take a stake in exchange for a share of the royalties.

Recent acquisitions include the publishing catalogues of former Fleetwood Mac guitarist and vocalist Lindsey Buckingham, folk-rock legend Neil Young, and acclaimed record producer and label exec Jimmy Iovine.

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