Hipgnosis Songs’ deal to sell a fifth of its music catalogue to a Blackstone-owned vehicle has been put under scrutiny by analysts, with some raising doubts the move will be enough for shareholders to support the trust’s continuation.
In a stock exchange notice on Thursday (14 September), the trust said it had agreed to sell 29 catalogues for $465m to Hipgnosis Songs Capital, the Blackstone-backed private fund managed by SONG investment adviser Hipgnosis Song Management. Using the proceeds from the catalogue sales, the board also outlined a share buyback programme of up to $180m and the repayment of $250m drawn under the trust's revolving credit facility, as well the introduction of additional, lower investment advisory fee tiers. Hipgnosis agrees $465m catalogue sale from public trust to private Blackstone vehicle...
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