Napster


Challenge

With an expanding global presence and increase in demand due to the transition in online music consumption, Napster required a funding provider that would support its capital structure optimisation and growth initiatives.

Having worked previously with US-based lenders Napster CFO Randy Haas, realised that a European funding partner was better suited to support Napster’s growth and strategic aspirations in the European market by providing ongoing working capital based on EU revenues, and  protection from the potential risk of debtors’ non-payment.

Solution

ABN AMRO Commercial Finance provided Napster with a $15m refinancing solution for its Luxembourg entity.  The solution consisted of Receivables Finance providing sustainable working capital, alongside Bad Debt Protection which provides up to 100% cover on credit approved debt.

The flexible funding solution will be responsive to the growing needs of the business, enabling Napster to continue providing a best in class music platform to their partners.

Results

The funding provided enabled a significant increase in financing levels, boosting headroom and providing flexibility for growth.

Napster CFO, Randy Haas, says:

“We are appreciative of ABN AMRO’s collaborative and responsive manner in partnering with us in developing the debt facility to meet our needs. ABN has proven to be a great partner to work with, the tools are manageable and efficient to use, and service is responsive.”

Through an Asset Based Lending solution which meets the needs within a strong European presence, Napster can continue to provide on-demand streaming services through geographical and product expansion.

Background

Napster is a leading global subscription music streaming service. Members have access to millions of ad-free songs. Founded in 2001 and headquartered in Seattle, Napster forms part of Rhapsody International Inc. in the US, with offices in Germany and Brazil.

Receivables Finance

Receivables Finance is an umbrella term for Invoice Finance solutions - which sit at the core of any Asset Based Lending.

Bad Debt Protection (BDP)

BDP safeguards your business against the risk of late and non payment - protecting your ability to grow with complete confidence.

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