Kobalt Music Group has further expanded its available funds for acquisitions by more than $700m.

As well as announcing its inaugural $266.5m asset-backed securitisation transaction, Kobalt also has a new $450m revolving credit facility.

Combined with the company’s previously announced joint venture with Morgan Stanley (for more than $700m to fund investments) in November 2023, these transactions provide Kobalt with more than $1 billion to continue to grow and meet its strategic initiatives. 

Atlas SP Partners was the sole structuring agent and joint bookrunner with Truist Securities on the asset-backed securitisation (ABS) transaction, which is comprised of more than 5,000 music works from 66 writers across more than 50 catalogues. The revolving credit facility was led by Truist to fully refinance existing indebtedness. 

“This refinancing will fuel our growth initiatives and allow us to further fortify our position as an industry trailblazer,” said Kobalt CFO Catrin Drabble. “Along with the Francisco Partners transaction and Morgan Stanley joint venture, these transactions enable us to continue our investment into the business and our technology with far greater flexibility, simultaneously strengthening the best-in-class service we deliver to our songwriters and partners. Thanks to all of our partners for facilitating these transactions, recognising the value of the portfolio and supporting Kobalt’s future vision.” 

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