RHM.L Regulatory News (RHM)

29 December 2021

ROUND HILL MUSIC ROYALTY FUND LIMITED

("RHM" or the "Company")

Acquisition of Niko Moon Rights

Further diversifies portfolio with increased exposure to country & pop

The Board of Round Hill Music Royalty Fund Limited is pleased to announce that the Company has acquired a significant share of the publishing rights of Niko Moon, the American country singer/songwriter.

Key Acquisition Highlights:

· The acquisition comprises 29 compositions, including songs performed by Zac Brown Band, Avicii, and Sir Rosevelt

· The catalogue includes the number one Zac Brown Band hits "Homegrown", "Keep Me in Mind", "Heavy is the Head", "Beautiful Drug" and "Loving You Easy"

· "Heavy is the Head" was the second single released from Zac Brown Band's fourth studio album, 'Jekyll + Hyde' and was used as the theme for the 2015 Major League Baseball season. The song has also appeared in the video game WWE 2K16

· The #1 Zac Brown Band hit, "Loving You Easy" is co-written by Al Anderson, a catalogue already owned by the Company, further increasing the ownership of this #1 country song in the portfolio

Background to the Catalogue

Niko Moon is an American country pop singer and songwriter signed to Sony Music Nashville/RCA Nashville. He has written songs for numerous artists in the genre including Dierks Bentley, Zac Brown Band, Rascal Flatts, and Morgan Wallen. He was also a member of the group Sir Rosevelt with Zac Brown and Ben Simonetti. In 2021, Moon earned the songwriter of the year award at the SESAC Nashville Music Awards.

Catalogue Details

The Company's acquisition encompasses 29 compositions of publishing rights from Niko Moon.

The catalogue has a revenue mix of 37% Mechanical, 52% Performance, 10% Sync and 1% Other. In terms of geographical exposure, 84% of the revenue is from the US, while the balance is from other countries.

The top songs ranked by revenue are: "Homegrown", "Keep Me in Mind", "Heavy is the Head", "Beautiful Drug" and "Loving You Easy".

All figures above are based on the catalogue's royalty statements in the calendar years 2018-H12021.

Disclosure of Financial Detail on Acquisitions

Due to commercial sensitivities, the Company is unable to disclose financial details for each acquisition as it occurs. However, on completion of the investment of proceeds from the C Share fundraise of US$86.5 million, together with the remaining undrawn balance of its existing revolving credit facility, the Company will make further financial disclosures.

Trevor Bowen, Chair of Round Hill Music Royalty Fund, commented:

"We are pleased to announce the acquisition of this important catalogue. This acquisition highlights Round Hill's ability to source and acquire attractive catalogues in a highly diverse array of music markets. This acquisition will bolster the portfolio's country and pop assets, further diversifying the portfolio by genre and income type. The Board believes these assets to be in a highly valuable music genre for the Company's exposure to quality writers like Niko Moon due to Country's typically longer average duration cash flows."

Josh Gruss, Chairman and CEO of Round Hill, the Company's investment manager, commented:

"Niko is a much sought after songwriter and an acclaimed performer in his own right. His unique gift and authentic love of music marks him out as an elite talent among his peers. We are delighted to have secured this superb catalogue, adding further timeless classics and number 1 hits to RHM's portfolio. We look forward to updating Shareholders imminently on our near-term pipeline of exciting opportunities."

Niko Moon commented:

"I am so happy to be doing this deal with Round Hill. I wanted these songs to go to an organization that values the music as much as I do, and Round Hill is definitely that place."

FOR FURTHER INFORMATION

Notes: 

Unless the context otherwise requires, capitalised terms used in this announcement have the meanings in the Prospectus.

The Company is a non-cellular Guernsey company. The Company's Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve its Investment Objective, the Company will invest in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP ("Round Hill"), to be ancillary thereto. 

Founded in 2010, Round Hill is a fully integrated owner and operator of music copyright properties and the sixth largest music publishing company in the US. Headquartered in New York with additional offices in Nashville, Los Angeles and London, Round Hill has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.