James Brown's Got A Brand New Bag:
Issuing Bowie Bonds

By Gregory Zuckerman

James Brown, the legendary soul singer known as "the hardest working man in show business" could have a new reason to feel good this week.

The singer is working on a deal to make a cool $40 million by selling so-called Bowie bonds to investors, according to people close to the matter.

The novel bonds are named for English singer David Bowie, who became the first entertainer to sell bonds to investors two years ago.  Others, such as R&B duo Ashford & Simpson and heavy-metal group Iron Maiden have followed in Mr. Bowie's footsteps, spurred by investment bankers who predict a rash of music, movie and sports stars will turn to the bond market to raise quick cash.

Like other entertainment bonds, the Brown bonds will be secured, or tied to future recording and publishing earnings generated from a catalog encompassing more than four decades.

Most bond investors usually are tuned in to statements about interest rates from the likes of Federal Reserve Chairman Alan Greenspan and Treasury Secretary Robert Rubin, rather than Mr. Brown's hits like "Sex Machine" and "Super Bad."  But if the investor is anything like that which greeted other entertainment bonds, Mr. Brown should be able to pull off the sale.

Indeed, archetypal heavy-metal band Iron Maiden, known for songs like "Bring Your Daughter to the Slaughter," rocked the bond world by successfully selling $30 million of bonds earlier this year.

The Brown bonds are likely to sport a yield of around 8%. While Mr. Brown is no longer topping the charts, the singer's popularity has increased in recent years, as rap musicians liberally sample from his trove of soul classics.

The bonds will be underwritten by Pullman Group, architects of the original Bowie bonds.

Mr. Brown wouldn't comment on the prospect of pocketing millions of dollars thanks to the bond market other than to say through a spokeswoman that "It's a blessing to reap these many rewards from like.  God bless America."

The Wall Street Journal, May 3rd, 1999.