SONG sold approximately 20,000 songs for $23.1m, representing around 1% of the trust’s value, according to an RNS notice.
SONG sold approximately 20,000 «non-core songs» for $23.1m, representing around 1% of the trust's value, according to an RNS notice.
According to SONG, the assets sold at a 14.2% discount to the valuation the trust's independent valuer placed on them as of 30 September 2023.
The trust is currently trading on a 54.95% discount to its net asset value, according to data from the Association of Investment Companies.
Hipgnosis Music Limited takes SONG and Mercuriadis to High Court
It said the net proceeds of the sale were equal to approximately $22.6m, which management said will be allocated to its revolving credit facility in an effort to provide the trust with «greater headroom under its future covenant compliance reporting».
The deal comes following the collapse of a sale worth $465m to Hipgnosis Songs Capital, the Blackstone-backed private fund managed by SONG investment adviser Hipgnosis Song Management.
Failed continuation vote leaves Hipgnosis Songs manager in a 'do or die' position
Both the publicly-listed SONG and the private $1bn Blackstone vehicle Hipgnosis Songs Capital are advised by the Merck Mercuriadis-run Hipgnosis Song Management.
The deal fell apart, however, when SONG's shareholders voted against trust's continuation.
It was noted the songs offloaded in the new sale require «time intensive, ongoing accounting and reporting obligations and do not all have perpetual ownership rights… [and] their eventual sale was part of the company's acquisition strategy».
Peel Hunt analyst Anthony Leatham highlighted that having failed its continuation vote and since embarking upon a strategic
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