Formula One to launch $1.8 billion credit facility on Thursday

By Sara Rosenberg

New York, May 8 - Formula One will be holding a bank meeting on Thursday in New York and on Friday in London to launch a $1.8 billion credit facility, according to a market source.

Goldman Sachs & Co., RBS Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal.

The facility consists of a $50 million five-year revolver, a $450 million five-year term loan A and a $1.3 billion six-year term loan B, the source said.

Proceeds will be used to refinance existing debt, including the credit facility done in April that consists of a $1,383,000,000 term loan B priced at Libor plus 450 basis points with a 1.25% Libor floor, an $817.5 million term loan C priced at Libor plus 500 bps with a 1.25% Libor floor, and a $70 million revolver. The term loan B had been sold at an original issue discount of 99.

Completion of the new credit facility is contingent on the company doing an initial public offering of stock.

Formula One is the organizer of the Formula One World Championship (F1) and owner of the commercial rights to F1 motorsports racing.

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