Formula 1 amends loan, removing net leverage covenant until 2022

By Sara Rosenberg

New York, June 29 – Formula 1 (Delta Topco Ltd.) amended its $2.902 billion first-lien term loan and $500 million revolving credit facility to provide that the net leverage financial covenant will not apply until Jan. 1, 2022, according to a news release.

The net leverage holiday is subject to compliance by Formula 1 with certain additional conditions, including the maintenance of minimum liquidity of $200 million, and certain restrictions on dividends, other payments and the incurrence of additional debt.

The company has the option to recommence the requirement to comply with the net leverage financial covenant prior to Jan. 1, 2022 and in which case the relevant additional conditions will cease to apply.

Formula 1 is a motorsports business that is a subsidiary of Liberty Media Corp.

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