Nickolas Ashford and Valerie Simpson, a husband-and-wife team singing and songwriting team, are borrowing millions of dollars against their future music royalties.
Pullman Group, run by investment banker David Pullman, is handling the credit, which it is repackaging into asset-backed- securities that are rated single-A. The securities have not yet been sold. The precise size of the deal isn't known, but it exceeds $25 million.
The deal differs from other music-royalty issues because Ashford and Simpson have worn so many hats during their three decades in the music business. The loan, which closed within the last few days, is backed by shares of the royalties held by the duo in their capacities as publishers, record masters, songwriters and producers.
Formerly with Motown Records, Ashford and Simpson are responsible for a number of hits, including "Ain't No Mountain High Enough", which they first wrote for Marvin Gaye and later produced for Diana Ross. Royalties from that tune and many others are included in the securitized catalog.
ASSET-BACKED ALERT, November 30th, 1999