Carlyle Group is on the verge of closing a $464 million bond sale backed by music rights.
That’s in keeping with Bloomberg, which reported on Monday (April 28) that the sale is the “first securitization of music royalties” from Carlyle-backed Litmus Music.
Litmus was launched in 2022 by music trade veterans Hank Forsyth and Dan McCarroll, backed by USD $500 million in funding from Carlyle International Credit score, cut up between fairness and debt.
Carlyle International Credit score is one among three platforms (alongside International Non-public Fairness and International Funding Options), operated by funding agency Carlyle, which has $441 billion of property underneath administration, in keeping with its web site.
Citing an individual with information of the matter, Bloomberg reported on Monday (April 28) that the bond sale, backed by music rights from artists together with Benny Blanco, Keith City, and Katy Perry “was 3 times oversubscribed”.
Bloomberg reported additional that the bonds “are backed by a music portfolio valued at over $750 million”.
The report added that “proceeds from the issuance will refinance current debt on the portfolio and distribute a dividend to shareholders”.
Litmus has been busy over the previous three years. It acquired Randy Newman’s share of his recorded music and publishing in October 2024.
In September, Opus Music Group, proprietor of rights to music catalogs from Juice WRLD, Ozuna, Maluma, and Rauw Alejandro, was quietly acquired by Litmus.
Litmus additionally acquired a “portfolio of compositions” from songwriter and producer Benny Blanco in June 2023, masking what it stated are “quite a few multi-platinum hits and lots of of songs”.
After which, in September 2023, Litmus acquired a bundle of rights from Katy Perry in a deal trade sources urged was value round $225 million, marking 2023’s greatest catalog take care of a single artist.
Litmus acquired Keith City’s grasp recordings catalog in December 2022.
Carlyle’s reported bond sale marks one of many newest rights-backed securitization offers within the music trade.
In November, Blackstone’s Hipgnosis efficiently accomplished a $1.47 billion music rights asset-backed securities transaction (i.e. bond providing).
In October, Harmony closed an $850 million Asset-Backed Securities transaction to “gas strategic progress and acquisitions”.
Harmony’s $850 million ABS transaction marked the third sequence of Notes issued as a part of a broader $2.6 billion bond providing backed by music rights from Harmony’s catalog.
Additionally in October, Duetti, a music funding firm centered on indie music rights, introduced it had secured $114 million in new funding for the additional acquisition of music catalogs. That features $34 million in new fairness financing, led by PE agency Flexpoint Ford, with participation from current traders Nyca Companions and Viola Ventures. It additionally included an $80 million raised via the corporate’s first asset-backed securitization (ABS) transaction, which Duetti says was “backed by a extremely diversified music rights catalog.”
Elsewhere within the music trade, in March 2024, Kobalt confirmed the increase of $266.5 million by way of its first-ever Asset-Backed Securitization (ABS) transaction, backed by music royalties from a catalog of greater than 5,000 works from 66 writers.
Additionally in March, HarbourView Fairness Companions secured roughly $500 million in debt financing via a personal securitization backed by its catalog of music royalties.
In January, Affect Media Companions confirmed that it had secured roughly $360 million in debt financing via an inaugural personal securitization, collateralized by music royalties from its portfolio of music rights.Music Enterprise Worldwide
