Hipgnosis is elevating one other $210 million through a brand new share challenge on London Inventory Trade
The Hipgnosis Songs Fund raised more cash by placing a new stock tranche on the London Stock Exchange.
The company announced today (June 16) that it is seeking a capital increase of approximately £ 150 million ($ 210 million) through the placement of 123.97 million common shares at an issue price of £ 1.21 per share.
The money will be used to “purchase a sizeable pipeline of songs,” said Hipgnosis, including “some of the most influential and successful songs of all time.”
The placement opened today and is expected to close on July 6th – however, Hipgnosis reserves the right to close it earlier or later than that date.
Interestingly, in today’s announcement, Hipgnosis stated that if stock market investors want to get involved, they’d better not hang around. The company announced that following the new listing, it “currently has no plans to offer any further shares for cash until March 31, 2022”.
However, Hipgnosis added: “Separately from the placement, [we are] currently about a refinancing of fin [our] existing revolving credit facility. “
In its preliminary results for the fiscal year ended March 2021, as released last week, Hipgnosis confirmed that its total gross debt had reached $ 577 million (with a net debt of $ 438 million) after $ 90 million off its revolving credit facility was drawn down this March.
Hipgnosis last raised money on the stock market in February when it raised $ 100 million from a new stock issue. The money raised through this stock offering was raised by New York-based Morgan Stanley Investment Management Inc.
Hipgnosis founder and CEO Merck Mercuriadis said today of the new plan for the £ 150 million stock issue, “I founded Hipgnosis to bring the investment community access to exceptionally successful hit songs and songs by culturally significant artists to establish itself as a new brand and uncorrelated asset class with attractive risk-adjusted returns.
“Three years after our IPO, the support of our shareholders allowed us to build a portfolio of songs valued at over $ 2.2 billion, and Hipgnosis has an overall NAV in the most difficult social and economic backdrop of our lives. Return of 40.7% achieved. This success has firmly established Songs as one of the most attractive new asset classes worldwide.
“This increase gives our historic and new public market investors the only chance for the next 12 months to gain access to Hipgnosis’s existing portfolio, as well as a pipeline that includes some of the most important and successful songs of all time, at valuations that are very attractive . “
Merck Mercuriadis, Hipgnosis (pictured)
“This increase gives our historic and new public market investors the only chance for the next 12 months to gain access to Hipgnosis’ existing portfolio, as well as a pipeline of some of the most important and successful songs of all time, at valuations that are explosive in the face of the continuing Growth in streaming, which will significantly increase future revenues, very attractive. “
Hipgnosis announced in the past month and a half the acquisition of music catalogs from three Grammy-winning songwriters / producers: Joel Little (Taylor Swift, Lorde), Andy Wallace (Aerosmith, Coldplay, Prince) and Andrew Watt (Camila Cabello, DJ Snake).
The company is also said to have recently acquired the Red Hot Chili Peppers song catalog for around $ 140 million.
Hipgnosis welcomed Vania Schlogel – Chairwoman of Epidemic Sound – as a non-executive director to its board this week.Music business worldwide