Formula One launches $2.18 billion term loan to investors

By Sara Rosenberg

New York, May 30 - Formula One held a bank meeting on Thursday afternoon to launch a $2.18 billion term loan due April 2019, according to a market source.

Goldman Sachs Bank USA, UBS Securities LLC and RBS Securities Inc. are the lead banks on the deal.

The U.S. tranche of the loan is talked at Libor plus 325 basis points and the euro tranche is talked at Euribor plus 375 bps, with both having a 1% floor and 101 soft call protection for six months, the source said.

Rollover commitments are being offered at par, and new money commitments are being offered at an original issue discount of 991/2.

Proceeds will be used to reprice an existing U.S. term loan from Libor plus 475 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 475 bps with a 1% floor.

Existing lenders will be paid out at 101 with the repricing.

Commitments are due on June 13, the source added.

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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