For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231016:nRSP2081Qa&default-theme=true
RNS Number : 2081Q Hipgnosis Songs Fund Limited 16 October 2023
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.
LEI: 213800XJIPNDVKXMOC11
Hipgnosis Songs Fund Limited ("Hipgnosis" or the "Company")
Update on CRB III retroactive payments and withdrawal of October interim
dividend payment
16 October 2023
The Board of Hipgnosis Songs Fund Limited announces that it was notified on 13
October 2023 that Citrin Cooperman, the Company's Independent Portfolio
Valuer, has materially reduced its expectations of industry-wide retroactive
payments in relation to the U.S. Copyright Royalty Board's decision in
relation to royalties payable to songwriters for the period covering 2018-2022
("CRB III") for its valuation of the Company's portfolio as at 30 September
2023. As a result, the Board now expects to receive significantly lower
retroactive payments in relation to CRB III and therefore intends to reduce
its CRB III retroactive accrual to $9.9m, from $21.7m as at 31 March 2023.
Accordingly, in consequence of this unwinding of the CRB III accrual, the
Board has decided to withdraw the proposed interim dividend of 1.1325 pence
per share announced on 21 September 2023 in order to ensure compliance with
its revolving credit facility's Fixed Charge Cover Ratio covenant.
In addition, the Company is in discussion with the agent and the lenders to
avoid any potential impacts of the unwinding of the CRB III accrual on future
Fixed Charge Cover Ratio covenant compliance.
Subject to satisfactory conclusion to discussions with lenders, the Board
expects to declare and pay future dividends as targeted. A further
announcement will be made in due course.
The person responsible for making this notification is Andrew Sutch, Chairman
of Hipgnosis Songs Fund Limited.
For more information:
For further information please contact:
Hipgnosis Song Management
Merck Mercuriadis
Ben Katovsky
Rufina Pavry +44 (0)20 4542 1511
Giles Croot +44 (0)20 4542 1530
Singer Capital Markets - Joint Corporate Broker
James Moat / Angus Campbell (Corporate Finance) +44 (0)20 7496 3000
Alan Geeves / James Waterlow / Sam Greatrex (Sales)
J.P. Morgan Cazenove - Joint Corporate Broker
William Simmonds / Jérémie Birnbaum (Corporate Finance) +44 (0)20 3493 8000
James Bouverat (Sales)
RBC Capital Markets - Joint Corporate Broker
Elliot Thomas / Max Avison (Corporate Finance) +44 (0)20 7635 4000
Lisa Tugwell / Natalia Lipecka (Sales)
Ocorian - Company Secretary & Administrator
Lorna Zimny +44 (0) 28 9693 0222
The Outside Organisation
Alan Edwards / Nick Caley +44 (0)7711 081 843
Headland Consultancy
Susanna Voyle / Del Jones / Charlie Twigg +44 (0) 20 3805 4822
All US music publicity enquiries
Fran Defeo +1 917 767 5255
Notes to Editors
About Hipgnosis Songs Fund
Hipgnosis Songs Fund, which was founded by Merck Mercuriadis, is a Guernsey
registered investment company established to offer investors a pure-play
exposure to songs and associated musical intellectual property
rights. In March 2020 the Company became a constituent of the FTSE 250
Index. The Company is recognised as an investment trust under applicable HMRC
regulations.
About Hipgnosis Song Management Limited
The Hipgnosis Songs Fund's Investment Adviser is Hipgnosis Song Management
Limited, which was founded by Merck Mercuriadis, former manager of globally
successful recording artists, such as Elton John, Guns N' Roses, Morrissey,
Iron Maiden and Beyoncé, and hit songwriters such as Diane Warren, Justin
Tranter and The-Dream, and former CEO of The Sanctuary Group plc. The
Investment Adviser has assembled an Advisory Board of highly successful
music industry experts which include award winning members of the artist,
songwriter, publishing, legal, financial, recorded music and music management
communities, all with in-depth knowledge of music publishing. Members
of Hipgnosis Song Management Limited Advisory Board include Nile Rodgers,
The-Dream, Giorgio Tuinfort, Starrah, David A. Stewart, Poo Bear, Bill
Leibowitz, Ian Montone and Rodney Jerkins.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDGLBDGBBBDGXL