Hipgnosis agrees $465m catalogue sale from public trust to private Blackstone vehicle

To fund share buybacks and reduce debt

The Hipgnosis Songs fund (SONG) has agreed the sale of 29 catalogues to Hipgnosis Songs Capital to fund a share buyback programme and reduce debt, as part of strategic proposals to narrow its hefty discount.

Both the publicly-listed vehicle (SONG) and the private $1bn Blackstone vehicle (Hipgnosis Songs Capital) are advised by the Merck Mercuriadis-run Hipgnosis Song Management. In a stock exchange notice today (14 September), the board outlined several proposals it believes will act as a catalyst for re-rating the £1.1bn trust's share price. These include catalogue sales for aggregate gross consideration of $465m, a share buyback programme of up to $180m, the repayment of $250m drawn under the trust's revolving credit facility and the introduction of additional, lower investment advisory...