$600 Mil Buys Concord Serious Expansion
• After receiving first-time corporate credit ratings of B1 and B+ from Moody’s and S&P last month, Concord announce that it has closed on a $600 million term loan B debt offering which, in addition to its existing $450 million revolving credit facility, provides the company with access to over $1 billion of total debt financing. Proceeds from the new debt will be used to partially pay down the company’s revolving credit facility, allowing for significant additional capital availability for future acquisitions and working capital.
Bob Valentine, Concord’s CFO, remarked, “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.”
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.” In January, Concord acquired a substantial equity position in publisher PULSE Music Group. These 2020 transactions follow Concord’s recent acquisitions of genre-defining recorded music and publishing companies Musart, Fania, Independiente, Varese Sarabande, Victory Records and Sikorski Music Publishing. Concord has also created an industry-leading theatricals licensing company, Concord Theatricals, by combining The Rodgers and Hammerstein Organization, which it acquired as part of its acquisition of Imagem in 2017, with the iconic works of Andrew Lloyd Webber, and the Tams-Witmark and Samuel French licensing houses. DLA Piper represented Concord in this transaction.
• This news is just part of a landmark week for Concord — yesterday it was announced that Concord Music Publishing had acquired the catalog of Imagine Dragons.
