SESAC Music Group Closes $889 Million Whole Business Securitization

SESAC Music Group has closed its fourth and largest whole business securitization to date, issuing $889 million in five-year senior notes.

The deal raises SESAC Music Group’s outstanding senior notes to a total of approximately $1.1 billion. This bond issuance is notable as it is the largest 144A-rated whole business securitization ever completed in the music sector. The newly issued bonds are backed by nearly all of SESAC Music Group’s assets and revenue streams, spanning both its Performing Rights and Music Services divisions.

SESAC Performing Rights holds a significant catalog, representing songwriters like Ariana Grande, Kurt Cobain, Jack Harlow, Billie Joe Armstrong, and Axl Rose. In addition, SESAC licenses compositions featured in major television series such as ‘Seinfeld,’ ‘Grey’s Anatomy,’ ‘Suits,’ and ‘Modern Family.’ It also licenses compositions in movies that include ‘Cars 3,’ ‘Ant-Man and the Wasp,’ ‘ Frozen,’ and ‘Napoleon Dynamite.’

The company’s Music Services division also forms part of the collateral for the securitization. This arm delivers publishing and royalty administration for a range of clients, including independent creators and publishers, collective management organizations (CMOs), and digital service providers (DSPs). Significantly, SESAC’s AudioSalad platform provides metadata, media asset management, and distribution to labels, artists, and rightsholders.

“As we continue to expand both segments of our business, ensuring long-term access to institutional capital, and continuing to build upon our strong financial foundation and established reputation are crucial,” says SESAC Music Group’s Chairman & CEO John Josephson. “WBS transactions like the one we just closed will remain a vital part of our growth strategy, allowing us to continue to lower our cost of capital while expanding our global capabilities in support of the independent songwriters, composers, publishers, labels, artists, and CMOs we serve.”

Three major investment banks—Guggenheim Securities LLC, Barclays Capital Inc., and ING Financial Markets LLC—served as joint bookrunners for the transaction. Blackstone Securities Partners L.P. acted as co-manager, while Guggenheim Securities LLC also served as structuring agent. On the advisory side, Virtu Global Advisors, LLC undertook valuation, Latham & Watkins acted as SESAC’s legal counsel, and White & Case represented the underwriters.

SESAC Music Group holds a significant place in music rights management. The company operates deeply within the international collections network, servicing songwriters, music publishers, independent record labels, and recording artists. Its Music Services division supports copyright administration, licensing, and royalty collection globally. The platform also delivers catalog management and digital supply chain support for independent and self-released artists, along with vital back-office functions for organizations requiring copyright expertise.