Following on from its $282m IPO last month, Round Hill Music (RHM) will issue new ordinary shares under the terms of its placing programme. The shares will be issued at a price of US$1.01.
In this morning’s announcement, it is noted that “RHM has identified a seasoned portfolio of iconic catalogues with established steady-state revenues that the company intends to acquire with the net proceeds of the initial issue. Artists whose works are included within the pipeline investments include The Beatles, Celine Dion, The Rolling Stones, Louis Armstrong, Marvin Gaye, Elvis Presley, Percy Sledge, Bush, James Brown, Bonnie Tyler, The Supremes, Meat Loaf, Backstreet Boys, The Offspring, Phil Collins, George Harrison, Beck, Kid Rock, N Sync, Katy Perry, Bruno Mars, Kiss, Lady Antebellum and Carrie Underwood and many more.
The initial issue successfully raised US$282m which together with its ability to utilise gearing of up to 25% of the economic NAV, enables RHM to acquire a significant proportion of the pipeline investments. The company intends to use the net proceeds of the further issue to assist in acquiring some or all of the balance of the pipeline investments as at the 30 June 2020 valuation.”
As outlined in the company’s prospectus, the pipeline investments have been secured at an independent valuation of US$363m, as at a 30 June 2020.
About RHM
RHM’s objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. The company invests in a songwriter’s copyright interest in a musical composition or song (being their writer’s share, their publisher’s share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) (copyrights) together with all such rights and assets considered by its manager, Round Hill Music LP.
RHM: Round Hill Music announces placing to help close on the balance of pipeline investments