September 8, 2024 — Litmus Music, a music rights acquisition company launched in 2022 by industry veterans Hank Forsyth and Dan McCarroll in partnership with Carlyle Global Credit, has emerged as the successful bidder for Opus Music Group. This major acquisition not only includes the prominent catalog of Juice WRLD but also represents a significant expansion for Litmus Music.
Charles Johnson, Managing Director of Truist Securities’ Investment Banking, Media, Telecom, and Entertainment Group, confirmed the deal this week. Johnson highlighted Truist’s crucial role in facilitating the acquisition, noting that the firm worked closely with existing lenders to meet the acquisition’s timeline while introducing issuer-friendly terms that allow Litmus greater flexibility to execute its growth plans.
To finance this high-profile purchase, Litmus secured an upsized $400 million Revolving Credit Facility, up from the initial $250 million. Truist served as the ‘Left Lead Arranger’ and ‘Lead Bookrunner’ for this facility, which was arranged in July.
The acquisition of Opus Music Group is particularly notable for including a substantial stake in Juice WRLD’s catalog. This addition enhances Litmus Music’s already impressive portfolio, which had previously seen significant deals, including the acquisition of Keith Urban’s master recordings catalog in December 2022 and Katy Perry’s catalog in September 2023.
Opus Music Group, established in 2021 with backing from Elliott Management, had already made headlines earlier this year with its acquisition of a major portion of Juice WRLD’s catalog in a reported nine-figure deal. This catalog, now under Litmus Music’s management, includes some of the late rapper’s most influential and popular works.
The acquisition of Opus and its Juice WRLD catalog underscores Litmus Music’s strategic growth and ambition in the music rights sector. The deal aligns with a broader trend of major players in the industry expanding their financial capabilities. Recent months have seen other notable entities, such as Downtown Music and Kobalt, secure substantial credit facilities to bolster their operations. Downtown Music secured an additional $500 million from Bank of America in May, while Kobalt increased its credit capacity to over $1 billion earlier this year. HarbourView Equity Partners also raised its credit facility by $100 million in December 2023.
Truist Securities has been particularly active in the music industry, participating in significant credit arrangements for major players like Kobalt, Litmus Music, and Anthem Entertainment.
With the acquisition of Opus Music Group and its valuable Juice WRLD catalog, Litmus Music is poised to make a substantial impact in the music rights acquisition market, setting the stage for continued growth and influence in the evolving music industry landscape.