15th Apr 2020 09:47
(Alliance News) - Hipgnosis Songs Fund Ltd on Wednesday said it has entered into an agreement with its lenders to increase its revolving credit facility to GBP150 million from GBP100 million, with potential for a further GBP50 million increase.
Hipgnosis invests in songs and music intellectual property rights. It has signed the agreement with its syndicated group of lenders. JPMorgan Chase Bank was lead arranger.
The amount of the loan has been increased to GBP150 million, but could rise to GBP200 million at Hipgnosis's request "subject to certain conditions". These conditions were not disclosed.
The company said its amended facility gives it "greater flexibility to fund investments and provide additional working capital". Under Hipgnosis's investment policy, its borrowings cannot exceed 20% of the value of its assets less liabilities.
On top of the increased facility commitment, the maturity date on the loan has been extended to April 2025 from August 2022.
Shares in Hipgnosis were down 0.3% at 99.54 pence in London on Wednesday morning.
By Anna Farley; [email protected]
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