Hipgnosis enters $700m debt refinancing

In talks to hedge interest

Hipgnosis Songs Fund has engaged in a $700m debt refinancing programme in order to pay off its existing revolving credit facility and also to fund working capital.

The new $700m RCF will run for five years until 30 September 2027 and will refinance in full the existing RCF, which stands at a gross debt figure of $600m, according to the 31 March 2022 results. Hipgnosis Songs Capital submits bid for Pink Floyd catalogue This original RCF had a credit margin of 3.25% over a floating rate based on LIBOR, while the new RCF will be based on SOFR plus a margin of 2-2.25% depending on gross drawn debt. The initial margin will by 2%. Net debt as a percentage of operative net asset value was 25.4% as of 31 March 2022. Chris Helm, CFO (SONG) of Hipgn...