Investec has downgraded Hipgnosis Songs from ‘Buy’ to ‘Hold’ after the trust announced it would be selling a fifth of its music catalogues for $465m, in a bid to re-rate its share price.
Yesterday (14 September), the trust said it had agreed to sell the music catalogues to Hipgnosis Songs Capital, the Blackstone-backed private fund managed by SONG's 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 Songs music catalogue sale comes under scrutiny as continuation vote looms The move has been placed u...
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