Formula 1 changes issue price on $200 million add-on term loan to par

By Sara Rosenberg

New York, July 25 – Formula 1 (Alpha Topco Ltd.) revised the issue price on its fungible $200 million add-on first-lien term loan (B2/B+) to par from talk in the range of 99.75 to 99.875, according to a market source.

Pricing on the add-on term loan matches existing term loan pricing at Libor plus 325 basis points with a step-down to Libor plus 300 bps if a B2 corporate rating is achieved and a 1% Libor floor.

The corporate rating was upgraded by Moody’s Investors Service late last week to B2 from B3 and, as a result, the pricing will drop to Libor plus 300 bps with a 1% Libor floor in September.

The term loan debt is getting 101 soft call protection for six months.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used with cash on hand to repay the balance of the company’s $300 million second-lien facility.

The add-on loan is to the company’s existing $3,102,000,000 first-lien term loan.

Additionally, the company plans to amend its credit agreement to increase revolving facility capacity to up to $500 million.

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

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