News and Analysis
BMI attracts private lenders as New Mountain bid emerges
- Shubham Saharan
- +Sasha Padbidri
- + 1 more
•2 min read
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Direct lenders are circling music rights group BMI as the company nears a potential sale to New Mountain Capital, according to multiple 9fin sources.
The potential deal, which is reportedly set to value the company at around $1.7bn, follows an auction process led by Goldman Sachs that started earlier in the summer. BMI also explored a sale last year, but halted the process before a deal was reached.
Amid this latest sale effort, firms including Oak Hill Advisors, Blue Owl, and JP Morgan have been in discussions about providing debt financing, according to sources. JP Morgan launched a balance-sheet lending group within its investment bank last year.
The deal, and terms of any potential debt financing, are still in flux. But terms under discussion include a unitranche loan of at least $600m, priced in the region of 550bps-600bps over SOFR, sources said. That would lever the company roughly 5x-6x on a gross basis, they said.
BMI was founded in 1939, and is one of the world’s biggest music rights organizations. Currently led by chief executive Michael O’Neill, the company manages rights and licensing for the music of songwriters and artists including Rihanna, Taylor Swift and Ed Sheeran.
BMI, Oak Hill and Blue Owl declined to comment. New Mountain did not provide comment by the time of publication, and spokespeople for JP Morgan did not respond to a request for comment.
