Hipgnosis Songs Fund Limited Hipgnosis Songs Fund announces interest rate hedge (7889B)
October 05 2022 - 2:00AM
UK Regulatory
TIDMSONG
RNS Number : 7889B
Hipgnosis Songs Fund Limited
05 October 2022
LEI: 213800XJIPNDVKXMOC11
Hipgnosis Songs Fund Limited ("Hipgnosis" or the "Company")
Hipgnosis Songs Fund announces interest rate hedging
5 October 2022
The Board of Hipgnosis Songs Fund Limited, the first UK listed
investment company offering investors a pure-play exposure to songs
and associated intellectual property rights, and its Investment
Adviser, Hipgnosis Song Management Limited, are pleased to announce
that further to the announcement of the refinancing of its
Revolving Credit Facility (RCF) made on 3 October 2022, the Company
has now completed interest rate swap agreements which provide
increased certainty over the cost of the Company's debt.
-- Until 2 January 2023, interest on all the drawn debt is fixed
at 5.71% (including debt margin).
-- From 3 January 2023, the company has entered into interest
rate swaps to hedge $540 million. Of this, $340 million is hedged
for the duration of the RCF (until 30 September 2027) at a fixed
rate of 5.67% (including debt margin); a further $200 million is
hedged until 3 January 2026 at a fixed rate of 5.89% (including
debt margin). The balance remains unhedged to provide flexibility
in the operation of the RCF facility.
The cost of arranging both the RCF and the interest rate hedge
has been added to the principal amount drawn under the RCF. The
interest rate hedging contracts are not subject to margin calls in
the event of movements in underlying interest rates. Accordingly,
the Company now has certainty as to the quantum of its fixed
interest payment obligations over the term of those contracts.
Merck Mercuriadis, Founder and CEO of Hipgnosis Song Management
said:
"Together with the completion of our new Revolving Credit
Facility, executing these swaps concludes our refinancing. As debt
markets have become increasingly unpredictable during the course of
2022, these new agreements provide long term certainty and a stable
platform to take advantage of the Music industry's tailwinds."
For more information:
Hipgnosis Song Management
Merck Mercuriadis
Chris Helm
Giles Croot (Media) +44 (0)20 4542 1511
Rufina Pavry (Investors ) +44 (0)20 4542 1530
Singer Capital Markets - Joint Corporate
Broker
James Moat / James Maxwell / Alex Emslie
(Corporate Finance)
Alan Geeves / James Waterlow / Sam Greatrex
(Sales) +44 (0)20 7496 3000
J.P. Morgan Cazenove - Joint Corporate Broker
William Simmonds / Jérémie Birnbaum
(Corporate Finance)
James Bouverat (Sales) +44 (0)20 7742 4000
RBC Capital Markets - Joint Corporate Broker
Elliot Thomas / Max Avison (Corporate Finance)
Lisa Tugwell / Anastasia Mikhailova (Sales) +44 (0)20 7635 4000
Ocorian - Company Secretary & Administrator
Lorna Zimny +44 (0) 28 9693 0222
+44 (0)7771 978220;
FTI Consulting +44 (0)7809 411882;
Neil Doyle/ Paul Harris/ Laura Ewart +44 (0)7761 332646
The Outside Organisation
Alan Edwards / Nick Caley +44 (0)7711 081 843
All US music publicity enquiries
Fran Defeo +1 917 767 5255
Notes to Editors
About Hipgnosis Songs Fund
Hipgnosis, which was founded by Merck Mercuriadis, is a Guernsey
registered investment company established to offer investors a
pure-play exposure to songs and associated musical intellectual
property rights. The Company has raised a total of almost GBP1.3
billion (gross equity capital) through its Initial Public Offering
on 11 July 2018, and subsequent issues in April 2019, August 2019,
October 2019, July 2020, September 2020, February 2021 and July
2021. In September 2019, Hipgnosis transferred its entire issued
share capital to the Premium listing segment of the Official List
of the FCA and to the London Stock Exchange's Premium segment of
the Main Market, and in March 2020 became a constituent of the FTSE
250 Index. Since April 2021, the Company has been resident in the
UK for tax purposes and is recognised as an investment trust under
applicable HMRC regulations.
About Hipgnosis Song Management Limited
The Hipgnosis Songs Fund's Investment Adviser is Hipgnosis Song
Management Limited, which was founded by Merck Mercuriadis, former
manager of globally successful recording artists, such as Elton
John, Guns N' Roses, Morrissey, Iron Maiden and Beyoncé, and hit
songwriters such as Diane Warren, Justin Tranter and The-Dream, and
former CEO of The Sanctuary Group plc. The Investment Adviser has
assembled an Advisory Board of highly successful music industry
experts which include award winning members of the artist,
songwriter, publishing, legal, financial, recorded music and music
management communities, all with in-depth knowledge of music
publishing. Members of Hipgnosis Song Management Limited Advisory
Board include Nile Rodgers, The-Dream, Giorgio Tuinfort, Starrah,
David A. Stewart, Poo Bear, Bill Leibowitz, Ian Montone and Rodney
Jerkins.
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