Downtown Reportedly Secures Expanded $500 Million Bank of America Credit Facility

Downtown Music Holdings has actually apparently protected an extra half-billion-dollar credit center to bankroll indie advances.

The 17-year-old business’s $500 million credit-facility growth emerged in a Bloomberg piece today. At the time of this writing, Downtown itself didn’t appear to have actually released an official release on the topic.

Keeping up the discussed post, however, the Downtown Publishing moms and dad particularly acquired “an extra $500 million for providing to artists.” As we reported in March of 2022, the New York City-based company’s previous Bank of America line of credit offered access to as much as $200 million.

In a pointed out interview, Downtown Music CEO Pieter van Rijn suggested that his business had actually exceeded “‘preliminary forecasts on the fund.'” While extra information ought to emerge quicker instead of later on, the advancement highlights the sufficient capital that’s continuing to drift around the market in one type or another.

To be sure, 2024 has actually likewise provided a number of huge song-rights offers and capital dedications — the most substantial being the 50 percent Michael Jackson brochure stake that Sony Music obtained at a reported $1.2 billion appraisal in February.

Earlier today, Warner Music head Robert Kyncl communicated that a variety of other buyouts (tune rights along with services) might be in the cards for his own business, which had actually checked out and eventually decided versus the purchase of Believe.

Morgan Stanley-partnered Kobalt stated in March that refinancing and other actions had actually improved its overall “financing capability” past $1 billion. That very same month, HarbourView Equity Partners exposed “near $500 million” in royalties-backed financial obligation funding from KKR.

April saw Reservoir Media reveal an as much as $100 million offering, with Cutting Edge Group divulging $500 million in financial obligation refinancing. And to end the month, Blackstone quote nearly $1.6 billion for Hipgnosis Songs Fund– a deal that Concord, which had actually been contending for the collection of prominent IP, does not mean to leading

Regardless of these points and a series of crucial acquisitions– varying from IP (Primary Wave’s offer for the brochure of Neil Sedaka) to business (the Armada Music fund’s purchase of Cloud 9 Music)– 2024’s capital-related advancements have not been totally favorable.

Many notably, financing stays well below 2023 levels, with just a couple rounds revealed in April as kept track of by DMN Pro’s Music Industry Funding TrackerAmong those 2 raises is attributable to Superlogic (previously OneOf), which, regardless of counting as a board member previous Warner Music head Stephen Cooper, does not run exclusively within the core market.