Songs From The Weeknd, Maroon 5 Help Back KKR's First Music-Royalty Bond
- Childish Gambino, Stevie Nicks among artists represented
- Portfolio of 65,000 songs is valued at over $1.1 billion
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A subsidiary of KKR is marketing its first-ever music-royalty securitization to bond investors this week, giving money managers the chance to buy a piece of a diverse catalog of 65,000 songs including hits from The Weeknd, Stevie Nicks, and Childish Gambino.
KKR Credit Advisors is selling more than $732 million of asset-backed securities supported by publishing and sound recording royalties, as well as recoupment of artist advances, for a portfolio of songs valued at more than $1.1 billion, according to a presale report from Kroll Bond Rating Agency. The offering is being led by Credit Suisse and KKR, and Kroll expects to give the deal a grade of A, the sixth-highest rating.