Hipgnosis Songs Fund Limited Update on CRB III impact and dividend payment (2081Q)
16 Oktober 2023 - 8:13AM
UK Regulatory
TIDMSONG
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)
Alan Geeves / James Waterlow / Sam Greatrex
(Sales) +44 (0)20 7496 3000
J.P. Morgan Cazenove - Joint Corporate Broker
William Simmonds / Jérémie Birnbaum
(Corporate Finance)
James Bouverat (Sales) +44 (0)20 3493 8000
RBC Capital Markets - Joint Corporate Broker
Elliot Thomas / Max Avison (Corporate Finance)
Lisa Tugwell / Natalia Lipecka (Sales) +44 (0)20 7635 4000
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.
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