Concord Secures $850 Million in Senior Notes
Concord, the globe’s foremost independent music company, just orchestrated another massive financial play, locking down a new $850 million series of senior notes. This marks the third time Concord has tapped into the securitization space, using music royalties as the asset backing.
Together with notes issued in 2022, the latest financial maneuver now represents the largest music-backed securitization in history—one that reinforces Concord’s position as a heavyweight in both music and finance.
With an enviable catalog that stretches from The Beatles to Otis Redding and R.E.M. to Phil Collins, Concord’s expansive music collection, valued at over $5 billion, serves as the bedrock of this deal.
The notes are secured by royalties from over one million songs, representing a loan-to-value ratio of approximately 52%, with credit ratings of A+ from KBRA and A2 from Moody’s.
It’s clear Concord is playing the long game, with this round of notes providing ample funds for growth, additional acquisitions, and the retirement of a private note issuance from earlier this year.
“This transaction represents another significant milestone for Concord and the global music industry as we close our third music ABS offering, continuing our strategic efforts to elevate and support the artists and writers in our catalog,” stated Concord CEO Bob Valentine. He emphasized the ongoing mission to invest back into the music industry, adding, “As we grow to new heights, our focus continues to be squarely on our artists and the incredible art they create.”
Apollo, listed on the NYSE as APO, was instrumental in structuring the deal, with its Capital Solutions unit and Apollo Global Securities teaming up with Redding Ridge Asset Management to lead the investor syndicate. ATLAS SP Securities, a division within Apollo, acted as joint bookrunner for this latest securitization. The collaboration reflects both Apollo’s confidence in Concord’s asset base and the broader appeal of music as a stable, income-generating asset class.
Bret Leas, Apollo Partner and Co-Head of Asset-Backed Finance, commended Concord’s visionary management and the depth of its catalog, stating, “By anchoring and structuring this ABS, we have continued to help Concord unlock the value of their extraordinary music catalog. We are proud to provide a tailored solution to support their success.” Apollo’s Paul Sipio echoed the sentiment, highlighting the value of the partnership in driving Concord’s trajectory.
Concord’s catalog is nothing short of impressive, with over 1.3 million assets spanning songs, sound recordings, films, and even Broadway musicals. It's a deep well of creative rights that continues to grow, backing everything from hit singles to award-winning compositions. It’s also a cultural time capsule—this catalog isn’t just commercially valuable; it’s historically significant, comprising more than 300 GRAMMY-winning tracks and 400 Gold, Platinum, and Diamond certifications from the Recording Industry Association of America.
In addition to the support from Apollo and ATLAS SP Securities, a cohort of financial players added their expertise to bring the transaction to life. FTI Consulting served as the backup manager, while the Bank of New York Mellon stepped in as trustee. Virtu Global Advisors provided valuation services, while legal counsel came from DLA Piper on behalf of Concord and Milbank LLP for Apollo affiliates.
Headquartered in Nashville with offices around the globe, Concord is a company that doesn’t just license, market, and perform music—it supports a global network of over 125,000 artists and songwriters. Concord’s continuous growth only strengthens its foothold in the industry, underscoring that in the modern music world, owning the right mix of iconic and diverse assets can be as powerful as owning an army of streaming numbers.
As Concord looks ahead, its successful securitization strategy highlights the increasing crossover between music and finance. The marriage of creative assets with innovative financial models could very well shape the future of both industries, with companies like Concord leading the charge. And as music continues to evolve, Concord’s blend of financial foresight and artistic reverence suggests the best is yet to come.
