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29, January, 1999 Maiden in the Sunday Times?!?
'The Sunday Times' (a British broadsheet newspaper) reported this week that Iron Maiden are to issue £20 million of bonds. Here's the story in full:
"IRON MAIDEN, Britain's biggest heavy-metal band, is set to make a din in the City with a £20m bond issue.
Sanctuary, the music and media company that manages the group, is finalising plans to issue the bonds through a leading investment bank. The company hopes to announce a deal within the next fortnight.
Iron Maiden has sold 50m albums worldwide and has 20 Top 20 singles to its name, including The Number of the Beast and Bring Your Daughter to the Slaughter.
The band was formed by five working-class boys in London's EastEnd in 1976. Its members stand to make millions if the deal goes through. Steve Harris, 41, bass player, songwriter and the band's founding member, is expected to take the lion's share of the proceeds from the bond sale.
Andy Taylor, chief executive of Sanctuary, said: "We are looking at securitising the Iron Maiden back-catalogue and a deal is being worked on at the moment."
Iron Maiden is following in the footsteps of David Bowie, pioneer of the celebrity bond. In 1997 Bowie raised £34m on the New York market when he sold bonds backed by the income from his early albums.
Taylor said Iron Maiden's bond would be "ground breaking" and substantially different from the Bowie bond. One music industry executive said Sanctuary was keen to develop a securitising arm for rock and pop acts and said other deals could be in the pipeline."
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Iron Maiden today completed their much talked about bond issue. Here is Global Entertainment Capital's press release:
GEC STRIKES GOLD IN HEAVY METAL
TWO-TEN NEWS NETWORK, London, February 9. This press release is transmitted on behalf of Global Entertainment Capital, LLC
U.S dollars 30MM Securitisation of Record Masters and Copyrights for Sanctuary Group's Iron Maiden
San Francisco - Global Entertainment Capital, LLC ("GEC"), a leading entertainment finance company, announced today the completion of their U.S dollars 30MM (approximately) securitisation for The Sanctuary Group plc's managed-act: Iron Maiden and its catalogue. GEC's deal is backed by the record masters and copyrights of 15 albums of the English heavy metal band Iron Maiden, owned by Iron Maiden Holdings, Ltd. The 20-year transaction received above-investment grade ratings from Moody's Investor's Services and Fitch/IBCA.
GEC's Sanctuary/Iron Maiden transaction is the first ever royalty-backed securitisation to be performed by an artist in The United Kingdom, receive above investment grade ratings without any guarantees or external credit enhancement, and have an almost exclusive focus on income streams generated by record sales. The transaction was completed with Bill Leibowitz of Leibowitz, Roberts & Ritholz along with a team of international lawyers.
"This deal truly marks a milestone in the development of the entertainment finance market," says Riaz Valani, vice chairman of GEC. "We're excited about this transaction and have several innovative entertainment securitisations in the works. GEC is beginning to recognise the power of securitization to fuel the growth of music, television, film and literary businesses. This vehicle provides efficient, inexpensive capital to both artists and companies."
Founded in 1979, The Sanctuary Group plc, a publicly quoted company on the London Stock Exchange, has grown into one of England's premier multimedia companies, with areas including artist management, business management, booking agents (one of Europe's largest), a record company, book publishing, television production, and merchandising. Sanctuary has managed Iron Maiden since 1979, in which time Iron Maiden has grown to become one of the top 50 biggest-selling bands of all time (in excess of 52 million albums sold worldwide) as well as one of the world's largest touring and merchandising acts.
"Iron Maiden has a tremendous following around the world with total record sales of over 50 million. The securitisation of the predictable and steady stream of Iron Maiden's cashflow from the back catalogue makes it a solid investment," says Andy Taylor, Sanctuary's chief executive.
Global Entertainment Capital, LLC is a leading provider of debt capital and investment banking services to the music, television, film, animation and literary industries. GEC is a partnership between Global Asset Capital and The Stone Pine Companies and is headquartered in San Francisco, California with offices in New York and Denver.
"GEC has brought together the people, capital, and expertise necessary to build the foremost entertainment lender. We look forward to continuing to serve the creators of content by providing the marketplace with the highest quality, most efficient funding available," said Tabreez Verjee, director of GEC. Global Asset Capital, LLC "GAC" is a private investment bank focused on asset-backed financings of intellectual property and financial receivables. With over dlrs 3.0 billion of transactional experience, GAC is an emerging leader in the securitisation of entertainment, intellectual property, and esoteric financial assets. Founded in 1997 as KMS Structured Finance, Inc., GAC is based in San Francisco, California.
The Stone Pine Companies are a privately held group of financial services companies specialising in investment banking, merchant banking, and asset management. Stone Pine has made in excess of dlrs 7.0 billion of alternative investments, with successful ventures including Franchise Finance Corporation of America, the world's largest franchise lender, Silver Screen Management, a dlrs 1.5 billion Disney/HBO Films film financing vehicle, and Hamilton Lane Advisors, a leading pension advisor on alternative investments."