Formula One to launch $2 billion of new loans, amendment on Thursday

By Sara Rosenberg

New York, July 15 – Formula One Group (Delta 2 (Lux) Sarl) is set to hold a bank meeting at 2 p.m. ET in New York on Thursday to launch $2 billion of new term loans and an amendment and extension of existing term loans, according to a market source.

Bank of America Merrill Lynch and RBS Securities Inc. are the lead arrangers on the deal.

The new debt consists of a $1 billion seven-year incremental first-lien covenant-light term loan and a $1 billion eight-year second-lien covenant-light term loan, the source said.

In addition, the company is looking to amend and extend $2,102,000,000 of existing first-lien covenant-light term loans and €40 million of existing first-lien covenant-light term loans. These tranches will have a seven-year maturity and the new U.S. first-lien loan will be fungible with the amended and extended U.S. first-lien loan, the source continued.

Proceeds from the new loans and cash on hand will be used to refinance private high-yield debt and fund a distribution to shareholders.

Formula One is a sports media property, which operates and holds the commercial rights to the Formula One World Championships.

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