Embattled music fund Hipgnosis continued its bid to turn its fortunes around, with today the sale of an additional 20,000 songs for £18.4m.
The sale represents one per cent of the music fund’s investment portfolio, consisting of “non-core” songs which “require time intensive, ongoing accounting and reporting obligations and do not all have perpetual ownership rights,” Hipgnosis said.
Investors in Hipgnosis, which owns songs by Rihanna, Nirvana and Justin Bieber, had called on the company to sell some of its holdings as the firm’s share price floundered over the summer.
“The gross consideration reflects a 14.2 per cent discount to the valuation of the songs prepared by the Company’s Portfolio Independent Valuer as at 30 September 2023” the company said.
The net proceeds, which are expected to equal some $22.6m, will be used to pay RCF (revolving credit facility) drawings in an effort to give the music fund “greater headroom” under future covenant compliance reporting.
As part of today’s announcement, the company also publicised the appointment of Singer Capital Markets as corporate broker and financial adviser, as well as Shot Tower Capital as lead adviser in conducting part of the music fund’s strategic review.
