Canadian music publishing and rights management company ole today announced the arrangement of a $500 million USD credit facility from a consortium of 12 U.S. and Canadian banks, led by Los Angeles-based City National Bank (CNB). The line of credit will be used to fund future acquisitions, said the press release issued by CNB.
Originally ole was seeking a $400 million facility, but demand from the banking community led to the $100 million increase, according to CNB, declaring it “the largest credit facility in independent music publishing industry in recent years.”
“We believe the overwhelming demand for the facility speaks volumes to ole’s track record of execution and success, and we look forward to finding new opportunities to continue to scale in existing and complementary verticals as well as to further enhance our technology and data management assets,” said ole chairman and CEO Robert Ott in a statement. “We are pleased to have the financial backing, expertise and support from City National Bank and our other financial partners.”
Founded in 2004, ole has completed more than $520 million in acquisitions and has a catalog of more than 50,000 songs and 60,000 hours of TV/Film music of all genres. Among its acquisitions are the Sony Pictures Entertainment catalog, publishing and masters rights to Rush and a joint venture publishing company, ole-Bluestone, with producer/songwriter Timbaland.
The release states that ole has doubled in size every year for the past three years, achieving a 3-year compound annual growth rate (CAGR) of 55 percent.
“We’ve been supporting the entertainment industry for over 60 years and we see great potential in ole, which has earned a premier reputation not only in the music industry, but in film and television as well,” said City National chairman and CEO Russell Goldsmith in a statement. “City National’s lead role in this significant credit facility is possible in part because we are now an RBC (Royal Bank of Canada) company and it highlights our ever-growing commitment to serving the broad financial needs of the music industry.”
Sidley Austin represented City National Bank as Administrative Agent and Joint Lead Arranger. Richard Petretti led the Sidley deal team with assistance from Chris Masterson, Ryan Stasell, Ivy Jones, Dusan Clark.