Is It Adiós For ole?

Canadian music publisher ole is seeking bids of at least US$650 million as part of what the company is calling a recapitalization process.

The move comes after an investor decided to pull its money. Speculation in the press has suggested the move could trigger an outright sale of the music rights company, something sources inside the company say is less than likely.

“Ole has hired RCB Capitol to conduct a process to recapitalise the equity portion of ole’s capital structure”, a company spokesperson said without attribution.

“It is certainly possible that some party may suggest buying the company but that is not the intention of this process. Ole entered into a $500 million credit facility last summer. It remains well capitalised and will continue to operate as usual for the foreseeable future, including seeking acquisitions that make strategic sense”.

The company has made various acquisitions in recent years, led by an early investment from the Ontario Teachers’ Pension Fund. It has been reported that this is the investor now seeking to move its money elsewhere.

As mentioned by the company’s spokesperson, ole was granted a $500 million credit facility by a consortium of US and Canadian banks last September.

In a story published last Friday, the 24th, Billboard''s longstanding music publishing editor Ed Christman writes that "Toronto-based music publisher ole is being shopped, with the company looking for suitors to place minimum bids of at least $650 million to enter the process, while seeking an overall valuation of $800 million, according to numerous sources."  The company confirmed to Billboard that it is involved in a recapitalization process.

Christman's article appears to be more than speculation. He cites extensive financial data and provides opinions on what the company's appraised value might be on the open market. To read more, link here.

Founded in 2004, the company has over 100 people working in offices located in Toronto, Nashville, New York, Los Angeles and London and has spent as much as US$650 acquiring diverse catalogues containing over 50,000 songs and 60,000 hours of television and production music. The company's revenues come from its song and master recording catalogues, a stable of active songwriters and composers, IP brands, publishing administration agreements, label services and its digital rights-tracking division.

 

 

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