Recognition Music Group to Sell $372M Bonds Backed by Justin Bieber, Shakira Royalties

Recognition Music Group, backed by Blackstone, is selling $372 million of bonds tied to royalties from artists including Justin Bieber and Shakira. The bonds are secured by a catalog of over 47,000 compositions and recordings, with 76% released over a decade ago. Proceeds will be used to repay debt and fund reserves. The deal's A-2 class has a preliminary grade of A.

Recognition Music Group, backed by Blackstone Inc., has announced the issuance of $372 million in bonds secured by royalties from a diverse catalog of popular music. The bonds, rated A-2 by Kroll Bond Rating Agency (KBRA), are backed by publishing and recording rights from over 47,000 compositions and recordings, with 76% of the music released over a decade ago [2].

The bonds are part of Recognition's ongoing strategy to tap into the growing market for music royalty-backed asset-backed securities (ABS). The proceeds from the sale will be used to repay existing debt, fund reserves, cover transaction costs, and support other general corporate purposes. The transaction is structured as a music royalty ABS, with the bonds collateralized by royalties from a catalog valued at $2.95 billion as of March 31, 2025 [1].

The growing popularity of streaming services has significantly bolstered royalty cash flows, making such bonds increasingly attractive to investors. Streaming revenue from recorded music swelled to $20.4 billion in 2024, from about $1.8 billion a decade ago [2]. This trend is expected to continue, supporting the long-term viability of music royalty-backed ABS.

Recognition Music Group was founded in 2018 by long-time music industry executive Merck Mercuriadis to buy song rights. It was later acquired by Blackstone Inc. affiliates in 2021. The company has a history of tapping the song-backed debt market, including selling $1.47 billion of notes at the end of 2024 and its inaugural music royalty ABS in 2022, which totaled $221.65 million [2].

Barclays Plc is acting as the lead bookrunner for Recognition's latest proposed music royalty ABS. The rights in Recognition's music catalog are administered by several organizations, including Sony Music Publishing, Kobalt, and Universal Music Publishing Group.

The music royalty ABS market has seen significant activity in 2025, with a volume of around $1.7 billion so far this year, according to data compiled by Bloomberg News [2].

References:
[1] https://finance.yahoo.com/news/kbra-assigns-preliminary-ratings-lyra-161800262.html
[2] https://www.bloomberg.com/news/articles/2025-07-22/recognition-to-sell-bonds-backed-by-bieber-shakira-royalties