Think-Louder | KOBALT UPS SPENDING POWER TO OVER $1BN

Just four months ago, Kobalt announced a partnership with investment funds managed by Morgan Stanley Tactical Value to invest more than USD $700 million to acquire music copyrights over the next few years.

As part of its joint venture with Morgan Stanley, Kobalt will manage the creative, synch, licensing, administration, and investment services for these copyrights.

Now, Kobalt has executed two new transactions that it says, combined with the Morgan Stanley partnership, provide it “with more than $1 billion to continue to grow and execute on its strategic initiatives”.

First up, Kobalt has today (March 19) announced a new $450 million Revolving Credit Facility from a Truist Securities-led “syndicate”, which according to Kobalt will be used to “fully refinance existing indebtedness”.

Kobalt CFO Catrin Drabble said in a press release: “This refinancing will fuel our growth initiatives and allow us to further fortify our position as an industry trailblazer.”

In addition, Kobalt has confirmed the raise of $266.5 million via its first-ever Asset-Backed Securitization (ABS) transaction, backed by music royalties from a catalog of more than 5,000 works from 66 writers.