Yesterday MBW revealed that Concord had completed its second $100m+ deal of 2020, with the acquisition of the Imagine Dragons catalog.
That followed a deal in January which saw Concord acquire a majority stake in respected Los Angeles-based pop publisher, PULSE Music Group.
In the wake of the Imagine Dragons deal, Concord’s Chief Business Development Officer, Steve Salm, told MBW: “Concord has stuck to the same basic acquisition philosophy since day one: We’re honest, we’re fair, we’re fast, and everyone out there knows we have the financing to write the check.”
His words ring even truer today (August 18), with the news that Concord – which operates across both recorded music and publishing – has closed a new $600m debt offering.
Combined with its existing $450m revolving credit facility, the new term loan B debt offering provides Concord with access to over $1bn of debt financing in total.
Proceeds from the new debt will be used to partially pay down Concord’s revolving credit facility, allowing for significant additional capital availability for future acquisitions and working capital.
The $600m term loan B offering was placed with 90 investment firms by J.P. Morgan. It was upsized from an initially proposed $400m issuance due to more than 6-times oversubscription.
The new raise makes Concord one of the best-funded parties in the burgeoning music M&A sector, where its rivals include the likes of Hipgnosis Songs Fund, Downtown, Primary Wave, Round Hill, Kobalt Capital, Tempo Music Investments and Reservoir.
Concord says it received first-time corporate credit ratings of B1 and B+ from Moody’s and S&P last month.
“[This raise] shows that those investors are hungry to invest in timeless music content with global appeal that can be legitimately accessed and enjoyed by consumers everywhere, in more diverse and readily available ways than at any time in history.”
Bob Valentine, Concord
Bob Valentine, Concord’s CFO, said: “This highly successful debt offering is further validation that institutional investors believe in Concord’s long-term strategy of building one of the preeminent independent music companies in the world.
“It also shows that those investors are hungry to invest in timeless music content with global appeal that can be legitimately accessed and enjoyed by consumers everywhere, in more diverse and readily available ways than at any time in history.
“We are especially appreciative of our financing partner of over 20 years, J.P. Morgan, for their continued support in the evolution of our company, and are thrilled to share yet another milestone with them.”
“For more than two decades J.P. Morgan has had the pleasure of working with Concord and watching them evolve to become the preeminent independent music company they are today.”
David Shaheen, J.P. Morgan
David Shaheen, Head of Entertainment Industries and West Region for J.P. Morgan’s Corporate Client Banking and Specialized Industries business said: “For more than two decades J.P. Morgan has had the pleasure of working with Concord and watching them evolve to become the preeminent independent music company they are today.
“Concord’s success is a testament to the quality of their management and strength of sponsorship, we look forward to helping them build on their numerous accomplishments.”
Concord says it has increased its revenue nearly four-fold over the last five years, due to organic growth and strategic acquisitions to which it has committed over $1 billion since 2017.
Commented Concord CEO, Scott Pascucci: “We couldn’t be happier with the results that the J.P. Morgan team achieved for us in this transaction. Their execution was flawless, and it is very satisfying to see Concord’s hard work and strategic growth of the past few years be so well-received by such a large group of sophisticated financial institutions.”
The biggest deal in Concord’s history to date was its buyout of European publisher Imagem for a pricetag comfortably north of $500m in 2017. That deal brought the Rodgers and Hammerstein song catalog to Concord, which now forms a central part of its Concord Theatricals division.
“J.P Morgan’s execution was flawless, and it is very satisfying to see Concord’s hard work and strategic growth of the past few years be so well-received by such a large group of sophisticated financial institutions.”
Scott Pascucci, Concord
In addition to its Imagine Dragons and PULSE deals, Concord has recently acquired the likes of Victory Records / Victory Publishing, plus classical publisher Sikorski, and theater publisher Samuel French, in addition to Musart, Fania, Independiente and Varese Sarabande.
PULSE Music Group’s roster has been responsible for four Hot 100 No.1 hits this year. It includes Kehlani, Starrah, Ty Dolla $ign, BloodPop, Flo Milli and Trevor Daniel whose new single “Falling” hit #1 at Top 40 Radio and has been certified 2x Platinum by the RIAA.Music Business Worldwide