REG - Hipgnosis Songs Fund - Asset sale, adviser appointment, notice of results

Hipgnosis Songs FundAnnouncement

11/12/2023 07:15

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RNS Number : 2573W  Hipgnosis Songs Fund Limited  11 December 2023

LEI: 213800XJIPNDVKXMOC11

11 December 2023

Hipgnosis Songs Fund Limited ("Hipgnosis" or the "Company")

Sale of non-core assets, appointment of advisers and notice of interim results

Sale of None-core Assets

Further to the announcement of 14 September 2023, the Board of Hipgnosis
Songs Fund Limited has completed the sale of c.20,000 songs (the "Songs") for
a gross consideration of $23.1 million, representing approximately 1% by value
of the Company's investment portfolio.

These non-core songs, which are a subset of those identified as the Second
Disposal as set out in September, were bundled with the iconic Songs acquired
by the Company in 2020 as part of Kobalt Fund One.  They require time
intensive, ongoing accounting and reporting obligations and do not all have
perpetual ownership rights.  Their eventual sale was part of the Company's
acquisition strategy.

The gross consideration reflects a 14.2% discount to the valuation of the
Songs prepared by the Company's Portfolio Independent Valuer as at 30
September 2023 and represents a 9.6x Net Publisher Share multiple.  Net
proceeds are expected to equal approximately $22.6 million.

The net proceeds of the sale will be used to pay down RCF drawings, providing
the Company with greater headroom under its future covenant compliance
reporting.

Appointment of Advisers

The Company is pleased to announce the appointment of Singer Capital Markets
as sole corporate broker and financial adviser and Shot Tower Capital, LLC as
lead adviser to conduct due diligence on the Company's assets as part of its
strategic review.

 

Notice of Interim Results

The Company will announce its financial results for the six months to 30
September 2023 on Tuesday 19 December 2023.

There will be a briefing for analysts and investors at 08:30 on the day of
announcement.

To register to participate, please contact ir@hipgnosissongs.com.

A recording of the call will subsequently be placed on the Company's website
www.hipgnosissongs.com/song-investors/
(http://www.hipgnosissongs.com/song-investors/)

 

 For further information please contact:

Hipgnosis Songs Fund

 Robert Naylor / Sylvia Coleman

                                +44 (0) 20 7496 3000
 Via Singer Capital Markets

 Hipgnosis Song Management

 Merck Mercuriadis

                                +44 (0) 20 4542 1530
 Ben Katovsky

                                +44 (0) 20 4542 1511
 Giles Croot (Media)

 Singer Capital Markets - Corporate Broker

 James Moat / Alaina Wong / Angus Campbell (Corporate Finance)     +44 (0) 20 7496 3000

 Alan Geeves / James Waterlow / Sam Greatrex (Sales)
 Headland Consultancy - Financial PR                               +44 (0) 20 3805 4822

 Susanna Voyle / Charlie Twigg

 

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