Concord raises $600 million to finance new acquisitions

 

By Emmanuel Legrand

 

US independent music company Concord has closed on a $600 million term loan B debt offering. The offering, which was placed with 90 investment firms by J.P. Morgan, was upsized from an initially proposed $400 million issuance due to more than over-subscription after a two-week marketing process.
 

  In addition to an existing $450 million revolving credit facility, the new round of financing provides Concord with access to over $1 billion of total debt financing. Concord said that proceeds from the new debt will be used "to partially pay down the company’s revolving credit facility, allowing for significant additional capital availability for future acquisitions and working capital."
 

  “This highly successful debt offering is further validation that institutional investors believe in Concord’s long-term strategy of building one of the preeminent independent music companies in the world," said Concord CFO Bob Valentine. "It also shows that those investors are hungry to invest in timeless music content with global appeal that can be legitimately accessed and enjoyed by consumers everywhere, in more diverse and readily available ways than at any time in history."
 

  Added Concord CEO Scott Pascucci: “We couldn’t be happier with the results that the J.P. Morgan team achieved for us in this transaction. Their execution was flawless, and it is very satisfying to see Concord’s hard work and strategic growth of the past few years be so well-received by such a large group of sophisticated financial institutions.”