Round Hill Music Royalty announces new C share placing – Round Hill Music Royalty (RHM) has announced a placing of C shares at an issue price of $1 per C share under the terms of its placing programme.
It plans to use the net proceeds of the C share offer, as well as the remaining undrawn balance of its existing revolving credit facility, to make acquisitions in its near-term pipeline of copyrights in line with its investment policy, where due diligence is well advanced.
The pipeline details approximately $120m worth of investment opportunities and includes music publishing, master recordings and neighbouring rights from various iconic artists, songwriters and producers, spanning the 1960s, 1970s and 1980s. The board and Round Hill expect to deploy the net proceeds of the C share offer within three months of its closing. Meanwhile, the revolving credit facility allows RHM to borrow up to 25%. of economic NAV, calculated at the point of draw down.
The term is 5 years and the borrowing margin is 225bps over the relevant reference rate and a non-utilisation charge of 37.5bps. Cenkos Securities is acting as sole bookrunner and financial adviser to RHM in connection with the offer.
Trevor Bowen, chair of RHM, said: “We are delighted to announce RHM’s C Share Offer today which is being launched to take advantage of the extremely compelling acquisition pipeline, assembled by Round Hill, our Investment Manager. We believe the target acquisitions will be accretive to our portfolio returns and further diversify the world class list of catalogues already amassed by the team.
“This opportunity to expand the size of the Company will also provide further economies of scale that will be beneficial for all shareholders. The highly experienced team at Round Hill are not simply asset gathers but rather asset managers and therefore we will aim to raise proceeds sufficient to acquire the most compelling acquisition opportunities available.“
RHM : Round Hill Music Royalty announces new C share placing