Unlock Editor's Digest for free
FT editor Roula Khalaf has chosen her favorite stories in this weekly newsletter.
Hypnosis Songs Fund has slashed the value of its music portfolio by more than a quarter and used free cash to pay down debt, in the latest blow to investors at the UK-listed music rights investment company. Said it needs to be used.
The company's board, which was revamped last year to oversee a strategic review that could lead to a sale of the group, will evaluate its music rights portfolio, which includes songs by artists such as the Red Hot Chili Peppers and Rihanna. That's what I was asking my new advisor to do.
Following the new work, Shottower now values the portfolio at a median value of $1.9 billion, a 26.3% reduction from its valuation as of September 30, 2023.
Due to the decline in net asset value, the board said it will need to use the company's free cash flow to reduce debt. He said he had no intention of resuming the dividend „for the time being.“
This is a developing story