Independent publisher Bug Music has secured a $200 million credit line from nine banks led by JP Morgan. The credit line can be increased to $250 million.
In a statement, Bug Music CEO John Rudolph noted that the credit, priced at a London interbank offered rate (LIBOR) of 2.5%, came even as the market for credit has been tightening.
The expanded funding “will enable Bug Music to continue to have the financial resources to pursue acquisition opportunities and will enable us to continue to grow the company effectively,” stated Rudolph.
Bug Music’s recent acquisitions include songwriter and new “American Idol” judge Kara DioGuardi’s catalog of hits, sung by the likes of Christina Aguilera and Celine Dion. DioGuardi is also signed to Bug Music, which has an equity stake in her publishing company, Arthouse Entertainment.
Earlier this month, Bug Music announced the acquisition of Iggy Pop’s catalog and a publishing deal with Three 6 Mafia that also covers development of new artists by the duo.
Bug Music is controlled by Rudolph, and Crossroads Media, a joint venture between Bug Music chairman Tom McGrath and Spectrum Equity Investors.