Formula One lifts spread on U.S. term loan to Libor plus 350 bps

By Sara Rosenberg

New York, June 14 - Formula One increased pricing on the U.S. portion of its $2.18 billion term loan due April 2019 to Libor plus 350 basis points from Libor plus 325 bps, according to a market source.

Pricing on the $50 million equivalent euro tranche of the term loan remained at Euribor plus 375 bps.

Also, the 101 soft call protection on the entire term loan was extended to one year from six months, the source said.

As before, the entire term loan has a 1% floor.

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

Recommitments were due at noon ET on Friday.

Allocations are expected to go out early next week, the source added.

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

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.

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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