Apollo provides $1.25 billion financing tied to BMG–Concord combination

Apollo ($APO)-managed funds and affiliates provided a $1.25 billion capital solution supporting the combination of music businesses BMG and Concord. The transaction involves an equity investment in a BMG subsidiary holding Concord’s legacy asset-backed securitization structure, which is supported by a catalog containing more than one million songs.

The investment gives Apollo’s funds a non-controlling interest and provides capital to repay certain existing securitization obligations. It is a financing update following the combination of the music businesses, not a new acquisition of all of BMG by Apollo. The $1.25 billion measures capital supplied through investment vehicles rather than revenue earned by Apollo’s publicly traded parent. The structure links institutional capital to music-rights cash flows while leaving control of the business elsewhere.

Sources:

• Apollo — BMG capital solution, company release reprint