Sesac to Use Royalties Income as Debt Security

Sesac Inc., a 70-year-old, Nashville-based music-licensing company that handles the royalties of artists such as Bob Dylan and Neil Diamond, is planning to bundle future income from its music catalog and sell it as debt security.

Sesac, which collects performance income on behalf of owners of music copyrights, is looking to raise $29 million through the sale of a debt offering--known as an asset-backed

The issue is being marketed as a private placement and is being shopped around to institutional investors such as insurance companies.

While the sale of expected income from music royalties has generated wide interest, few deals have been completed. One of the most notable was David Bowie’s $55-million deal, which pooled the British rock ‘n’ roll star’s music catalog royalties and sold them privately.