Hipgnosis has completed a $1.47 billion asset-backed securitization (ABS), marking one of the largest music rights securitizations to date. The deal comes following Blackstone's $1.6 billion privatization of Hipgnosis Songs Fund earlier this year.

The securitization is backed by royalties from over 45,000 songs, including works from renowned artists like Neil Young, Christine McVie, Rodney Jerkins, and Dierks Bentley. The MUFG Securities-structured notes received an A- rating from KBRA and attracted 25 investors.

Key details of the securitization:

• Will enable full payment of existing debt
• Supports future catalog acquisitions
• Represents one of the most diversified music rights ABS issuances
• Structured by MUFG Securities
• Rated A- by KBRA

According to Hipgnosis CEO Ben Katovsky and CFO Dan Pounder, the company plans to expand its investor base and further institutionalize the asset class using their proprietary technology and data analytics platform for underwriting, monitoring, and reporting.

The deal positions Hipgnosis to pursue additional catalog acquisitions in an increasingly competitive market, following the clearance of debt restrictions that previously limited their purchasing ability.

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