Formula One sets pricing on $1.3 billion term B at Libor plus 350 bps

By Sara Rosenberg

New York, May 18 - Formula One firmed pricing on its $1.3 billion six-year term loan B at Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 98 and added a ticking fee of 100 bps per annum, according to a market source.

Previously, unofficial whispered talk on the B loan had been Libor plus 325 bps to 350 bps with a 1% Libor floor and an original issue discount of 99, the source said.

The loan includes 101 soft call protection for one year.

The company's $1.8 billion credit facility also includes a $50 million five-year revolver and a $450 million five-year term loan A.

Allocations are targeted to go out on Monday, the source added.

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

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 bps 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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