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Kobalt Raising $267M From Security Backed by Song Catalog Including YoungBoy & More

Kobalt is fundraising via a song catalog-backed security including songs by YoungBoy Never Broke Again, AJR, Busta Rhymes and Jessie J.

That puts music royalties in the company of common asset categories such as auto loans, mortgages and credit card receivables — all have a contractual obligation to pay — that are frequently used in asset-backed securities. The proceeds are expected to be used to fund reserve accounts, pay certain transaction expenses, repay existing debt and for other general corporate purposes, according to KBRA’s report. Since 2021, Concord, Hipgnosis Song Management, KKR Credit Advisors(with a catalog owned and administered by Kobalt) and Northleaf Capital Partners have raised money through music asset-backed securities rated by KBRA.

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