Hipgnosis has finalized a $1.47 billion asset-backed securitization (ABS) deal, marking one of the largest and most diversified music rights securitizations to date.

The securitization is backed by royalties from a 45,000-track catalog featuring works from prominent artists including Neil Young, Christine McVie, Rodney Jerkins, and Dierks Bentley. The deal attracted 25 investors and received an A- rating from KBRA.

This financial move follows Blackstone's successful $1.6 billion privatization of Hipgnosis Songs Fund earlier this year, where they outbid Concord. The ABS will serve two primary purposes:

• Pay down existing debt in full
• Support future catalog acquisitions

CEO Ben Katovsky and CFO Dan Pounder stated that Hipgnosis will continue expanding its investor base and leverage its proprietary technology and data analytics platform across underwriting, monitoring, and reporting.

The securitization deal, structured by MUFG Securities, represents a significant step forward for Hipgnosis under Blackstone's ownership, potentially setting the stage for future catalog acquisitions in an increasingly competitive market.

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