Hipgnosis refinances debt facilities

Music investment company Hipgnosis Songs Fund said it had refinanced its debt facilities with a new revolving credit facility.

The company on Tuesday said the new RCF was for $700m which runs for five years until September 30, 2027. The facility will be used to fully refinance the company's pre-existing facility and for working capital purposes.

Interest on the new facility charged is based on the Secured Overnight Financing Rate, published by the New York Federal Reserve, plus a margin of between 2.00% and 2.25% depending on the gross drawn debt. The initial margin will be 2.00%.

Hipgnosis added that it was in advanced talks to fix the majority of its interest rate exposure by entering into interest rate swaps to hedge the interest on the company's drawn debt.

“The company expects the completion of this transaction shortly and will update the market in due course,” the company said.

Reporting by Frank Prenesti at Sharecast.com