Hipgnosis has secured a $1.47 billion asset-backed securitization (ABS), marking one of the largest and most diversified music rights deals 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 prominent 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 aspects of the deal:

• Full repayment of existing debt
• Support for future catalog acquisitions
• Enhanced institutionalization of music assets
• Leveraging of Hipgnosis' proprietary technology and data analytics

The transaction represents a significant milestone for Hipgnosis under Blackstone's ownership, providing a strong foundation for future growth in the music rights market. The company plans to continue expanding its investor base while utilizing its technology platform for underwriting, monitoring, and reporting.

This refinancing positions Hipgnosis to pursue new catalog acquisitions in an increasingly competitive market, though the company currently faces an ongoing payments dispute with Barry Manilow.

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