Stock Spotlight: Hipgnosis entertains investors despite uninspiring debt refinancing

Discount at 38.6%

Hipgnosis Songs fund (SONG) successfully issued a $700m debt refinancing programme at the beginning of October, however the delay and details of the “fundraising of last resort” leaves questions for investors.

As part of an investment note that recommended the music trust as a ‘buy', Investec analysts Ben Newell and Alan Brierley explained that while the refinancing included an increase of the revolving credit facility, investors must note the atypical usage of the RCF. "Although the debt structure is labelled as an RCF, investors must be aware that it has not been used as an acquisition facility in the same way that RCFs are typically used by other alternative companies such as the infrastructure and renewables companies," they wrote. Hipgnosis enters $700m debt refinancing They added t...