Milbank LLP advised Apollo’s (NYSE: APO) Capital Solutions business affiliate Redding Ridge Asset Management (“Redding Ridge”) on an asset-backed securitization (ABS) for global music company Concord. Redding Ridge and ATLAS SP Securities led on the investor syndicate for the new $850 million senior notes issuance, which is backed by a diverse catalog of music assets valued at over $5 billion.
As Concord’s third securitization offering, cross-collateralized with notes offered by Concord in 2022, this transaction marks the largest music-backed ABS to date. The ABS is securitized by royalties from Concord’s music catalog of over one million compositions, master recordings and related assets, which includes work by The Beatles, The Rolling Stones, Carrie Underwood, Cheap Trick, Creed, Genesis, Kiss, Mike + The Mechanics, Otis Redding, Phil Collins, Plain White T’s, R.E.M. and R.E.O. Speedwagon.
Headquartered in Nashville, Concord is the world’s leading independent music company, supporting more than 125,000 artists and songwriters whose works are licensed, marketed and performed globally. Proceeds from the issuance will be used for the repayment of existing notes and to support Concord’s strategic growth and acquisitions.
The Milbank team advising Apollo was led by New York-based Structured Credit partner and practice group leader Sean M. Solis, along with special counsel Tony Mechcatie and Martin Brennan, law clerk Konstantina Katsimeni and associates Sofia Fiorilla and Jonathan Fisher.
Mr. Solis noted, “We are grateful to have had the opportunity to collaborate alongside Redding Ridge on this strategic transaction for Concord, an exciting transaction within the music industry.”
