S&P puts Zuffa on watch

S&P said it placed its BB- corporate credit rating on Zuffa LLC and the BB issue-level rating on its senior secured debt on CreditWatch with negative implications following the announcement that it will be acquired by WME IMG and a consortium of equity investors, in a transaction reportedly valued at about $4 billion.

“While the purchase price, the structure of the acquisition, and the financing terms were not disclosed, we could lower the corporate credit rating on Zuffa to reflect the B rating on operating partner WME IMG Holdings LLC once we can assess the transaction structure and the potential for higher leverage at the Zuffa subsidiary, depending on the financing,” said S&P credit analyst Latisha Kimber in a news release.

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