Formula 1 sets $1.7 billion term loan B at SOFR plus 325 bps

By Sara Rosenberg

New York, Nov. 15 – Formula 1 firmed pricing on its $1.7 billion term loan B due January 2030 at SOFR plus 325 basis points, the low end of the SOFR plus 325 bps to 350 bps talk, and added a 25 bps step-down at 0.5x inside closing date first-lien net leverage, according to a market source.

Also, original issue discount talk on the term loan B was changed to a range of 98.5 to 99 from a range of 97.5 to 98, the source said.

The term loan B still has a 0.5% floor, 101 soft call protection for six months and no amortization.

The company is also getting a $725 million term loan A.

Goldman Sachs Bank USA, JPMorgan Chase Bank, BNP Paribas Securities Corp., BofA Securities Inc., Mizuho, NatWest, Societe Generale, TD Securities (USA) LLC, Truist, Citigroup Global Markets Inc., Credit Agricole, Morgan Stanley Senior Funding Inc., MUFG, CIBC and Credit Suisse Securities (USA) LLC are the bookrunners on the $2.425 billion of term loans (BB/BB+).

Commitments are due at noon ET on Wednesday, accelerated from noon ET on Thursday, with allocations thereafter, the source added.

Proceeds will be used with cash on the balance sheet to refinance an existing term loan B due February 2024.

Formula 1 is a media company that is the exclusive commercial rights holder to FIA Formula One World Championship auto racing.

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