Formula One pulls refinancing credit facility as IPO postponed

By Sara Rosenberg

New York, June 15 - Formula One canceled its planned $1.8 billion credit facility because the initial public offering that was a condition of the deal is being delayed, according to a market source.

Goldman Sachs & Co., RBS Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Securities LLC were leading the new deal.

The facility consisted 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.

Pricing on the term loan B was set at Libor plus 350 basis points with a 1% Libor floor, and it had been sold at an original issue discount of 98.

The B loan had 101 soft call protection for one year and a ticking fee of 100 bps per annum that would have been in effect until the company completed its IPO, or the credit agreement commitment termination date as reached.

Proceeds would have been used to refinance existing debt, including a credit facility that was completed in April.

The existing facility consists of a $1,383,000,000 term loan B priced at Libor plus 450 bps with a 1.25% Libor floor that was sold at an original issue discount of 99, an $817.5 million term loan C priced at Libor plus 500 bps with a 1.25% Libor floor, and a $70 million revolver.

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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