Gaye estate issues royalty bonds

Architect of '97 'Bowie Bonds' inks deal

After spending millions to buy the man who sold the world, Wall Street investors will now have an opportunity to purchase themselves some soul.

David Pullman, the architect of the much-publicized 1997 “Bowie Bonds” $55 million debt issue, has inked a deal with the estate of Marvin Gaye to put together a similar deal backed by royalties from the legendary R&B singer’s recordings.

The size of the Gaye issue has not yet been finalized, but Pullman estimates that the final proceeds will be in the “eight-figure range.”

The bonds will be collateralized by the 200-plus songs in the singer’s back catalog, including such classics as “What’s Going On,” “Mercy, Mercy Me” and “Sexual Healing.” Pullman estimated the long-term value of the complete catalog at more than $100 million.

“The Marvin Gaye catalog sells millions of records per year, year in and year out,” he said.

Pullman negotiated the deal with Gaye’s wife Jan, his surviving children, Nona, Marvin III and Frankie, and the estate’s attorney, Gary Walters. Marvin Gaye was killed by his father in 1984 during an argument.

The 1997 Bowie Bond issue, backed by the royalties from recordings by David Bowie, was Pullman’s first foray into bringing musicians to the capital markets, as well as the first ever music royalty-backed bond issue.

Pullman has since pulled together multimillion-dollar bond deals for several other artists, including the Isley Brothers, Ashford & Simpson and James Brown.

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