Bowie Bonds


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Bowie Bonds

An issue of bonds with a 10 year maturity collateralized by the royalties on all 25 albums David Bowie released before 1990. David Bowie issued the Bowie bonds in 1997 in order to raise the capital to buy the rights to a number of his songs owned by his former manager. In exchange, Bowie gave up the royalties to the songs he did own for a period of 10 years. Since 2007, Bowie has owned the royalties to all of his songs. Bowie bonds were one of the first bond issued collateralized by intellectual property, though several such bonds have been issued since.

Bowie Bonds

Debt securities collateralized by future earnings of singer David Bowie's song catalog. Issued in 1997, Bowie Bonds established a new category of securitized debt in which entertainers sold future royalties to investors. Similar bonds were subsequently created for the song catalogs of James Brown, the Isley Brothers, and the estate of Marvin Gaye.
References in periodicals archive ?
Beginning with the Bowie bonds in 1997 and continuing to the present time, interest has escalated in intellectual property asset-backed securities.
He recently, in conjunction with a US Investment Bank, issued $55M in 15-year Bowie Bonds.
The Bowie bonds were so successful that Nomura have now established a billion-dollar fund in their first year of operation.
Rod will follow in the footsteps of pal David Bowie, who raised a staggering pounds 30million last year by selling his own Bowie bonds.
By selling shares in the future value of his various business enterprises, the Bowie Bonds, as they were called, helped Bowie overcome the pain of all those lost Bowie bucks back in the '70s.
Two years ago he issued so-called Bowie Bonds to the public, banking pounds 34 million cash - money loaned against future royalties.
The asset-backed securities can also be pooled with other CAK/UCC loans and offered to investors, much as the so-called Bowie Bonds were marketed.
The so-called Bowie bonds were rated a desirable single-A-3 by Moody's Investors Service - partly because music giant EMI licensed the back catalog for 15 years, which was put up as collateral to Prudential.
As creator of all Pullman Bonds(TM), his asset backed securitization deals include the famous $55 million Bowie Bonds transaction, the $30 million deal with Holland Dozier Holland (Motown Hit Machine) an eight figure deal with R&B greats Ashford & Simpson and the $30 million deal with "Godfather of Soul" James Brown.
The Pullman Group's music royalty securitization with Ron Isley and the Isley Brothers' catalog joins the ranks of other prestigious transactions created by David Pullman, including the Bowie Bonds, Holland Dozier Holland (Motown Hitmachine) Bonds, Ashford &Simpson Bonds and James Brown Bonds.