Formula 1 finalizes $1.7 billion term loan B at discount of 99

By Sara Rosenberg

New York, Nov. 16 – Formula 1 firmed the original issue discount on its $1.7 billion term loan B due Jan. 15, 2030 at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk in the range of 97.5 to 98, according to a market source.

Pricing on the term loan B is SOFR plus 325 basis points with a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 0.5% floor.

The term loan B has 101 soft call protection for six months and no amortization.

Previously in syndication, pricing on the term loan B was set at the low end of the SOFR plus 325 bps to 350 bps talk and the step-down was added.

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+). JPMorgan is the administrative agent.

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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