Hipgnosis Songs Fund Limited has announced the initiation of a strategic review to consider all options for the future of the company with the aim of maximizing value for shareholders. The review will include a review of the future management arrangements of the company. The board continues to recommend voting in favor of the Continuation Resolution and the First Disposal Resolution, which will allow the company to undertake a share buyback and reduce leverage. The board has also started the process of identifying a new chair for the company and has appointed an executive search firm for this purpose.

In light of the strategic review, the board has considered serving notice on the Investment Adviser to terminate the Investment Advisory Agreement. However, it has concluded that it is not currently in shareholders' interests to do so, as it would be an event of default under the Revolving Credit Facility if the agreement terminates without a new investment adviser being approved by lenders. The board has also asked the Investment Adviser to remove the clause in the agreement related to the call option to acquire the company's portfolio on termination, but the Investment Adviser has declined to accept this.

The company's lenders have agreed to amendments to the Revolving Credit Facility to return the company to compliance with the Fixed Charge Cover Ratio covenant. The strategic review does not envisage any offer for the company under the City Code on Takeovers and Mergers.

The person responsible for making this announcement is Andrew Sutch, Chairman of Hipgnosis Songs Fund Limited. For further information, please contact Andrew Sutch or the company's financial PR and advisers.