Hipgnosis to Sell Nearly $500 Million in Song Catalogs to Elevate Stock, Pay Down Debt
variety.comJem Aswad Executive Editor, Music Hipgnosis Songs Fund’s board of directors announced Thursday that the company will sell two segments of its song catalog in a bid to increase its stock price and pay down debt.
The statement, made in a dense 20-page document capably translated into plain English by Billboard, reveals that one package of assets includes 29 catalogs worth around $440 million, which the Blackstone-backed entity, Hipgnosis Songs Capital, has agreed to acquire.
The second package is worth $25 million and includes songs acquired in 2020 from Kobalt; the fund expects to announce a buyer later this month.
The board introduced the $465 million in proposed sales along with proposals to buy back up to $180 million of its own stock, to pay down $250 million of its revolving debt and to introduce lower advisory fees to be paid to Hipgnosis Song Management Limited.
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