Reservoir Media Files for Selling Securities in Capital Acquisitions, Other Needs

Reservoir Media plans to sell an additional $100 million in debt, according to a Filing S-3 with the Securities and Exchange Commission on Monday (April 29). The funds may be used for acquisitions, debt repayment, stock buybacks and other general corporate purposes, according to the filing.

The company will often offer common stock, shares of its preferred stock, debt securities, depositary shares, call options, call contracts or a combination of these offers, according to the filing. Reservoir Media currently has an authorized capital of 825 million shares — 750 million shares of common stock and 75 million shares of preferred stock. As of February 5, it had 64.82 million shares of common stock outstanding. No shares of its preferred stock have been issued.

Tapping the market for additional capital now will allow Reservoir Media to take advantage of the recent rally in its share price. Its Nasdaq-traded stock hit a 52-week high of $9.20 a share on Friday (April 26) — and its highest point since May 4, 2022 — and closed at $9.03 on Monday ( April 29), marking an increase of 26.6%. year to date. Reservoir Media went public in 2021 by merging with Roth CH Acquisition II, a special purpose acquisition company, or SPAC.

The company's pipeline of potential deals was about $2 billion in total value, CEO Golnar Khosrowshahi he said during the company's Feb. 7 earnings call. “We remain a highly regarded and respected partner,” he said, “and our proven reputation as a portfolio manager through value enhancement initiatives allows us to acquire some of the best assets in the market.”

Since its inception in 2007, Reservoir Media has invested $938 million, according to latest investment presentation — with $770 million of that amount being spent on catalog and company acquisitions. He owns Chrysalis Records, Tommy Boy Music and Philly Groove Records and manages artists through Blue Raincoat Music and Big Life Management.

In February, the company reported a 19% rise in first-quarter revenue to $35.5 million and raised its full-year revenue guidance to $140 million to $142 million, implying 15% year-over-year growth at the midpoint .