Liberty Media Corporation Announces Refinancing and Maturity Extension of Formula 1 Debt Facilities and Incremental Funding Related to MotoGP™ Acquisition
20 September 2024 - 10:15PM
Business Wire
Liberty Media Corporation (“Liberty”) (Nasdaq: FWONA, FWONK,
LLYVA, LLYVK) announced today that it closed the refinancing of the
first lien Term Loan B and the maturity extension of the first lien
Term Loan A and first lien revolving credit facility of certain
subsidiaries of Delta Topco Limited, the Liberty subsidiary which
holds all of its interests in Formula 1, on September 19, 2024.
Delta Topco Limited and its subsidiaries (“Formula 1”)
refinanced the previous $1,700 million Term Loan B with a maturity
of January 15, 2030 with a new $1,700 million Term Loan B with a
maturity of September 30, 2031 and extended the maturities of the
approximately $689 million Term Loan A and the $500 million
revolving credit facility from January 15, 2028 to September 30,
2029.
The margin for the Term Loan B has been reduced from 2.25% to
2.00% with the potential to permanently step down to 1.75% if
Formula 1’s net first lien leverage ratio is equal to or less than
3.75x on or following the earlier of (x) Liberty’s consummation of
the acquisition of Dorna Sports, S.L., the exclusive commercial
rights holder to the MotoGP™ World Championship (the “Dorna
Acquisition”) or (y) the termination of the Dorna Acquisition. The
margin for the Term Loan A and revolving credit facility is between
1.50% and 2.25% depending on Formula 1’s net first lien leverage
ratio. The reference rate for the Term Loan B, Term Loan A and
dollar borrowings under the first lien revolving credit facility is
Term SOFR. The Term Loan B, the Term Loan A and the revolving
credit facility remain non-recourse to Liberty Media. Formula 1,
together with the debt described herein, is attributed to the
Formula One Group tracking stock.
In connection with the transaction, Formula 1 also successfully
marketed an incremental $850 million of Term Loan B funding and
obtained an incremental $150 million of commitments to the newly
extended Term Loan A (collectively, the “Incremental Term Loans”).
The Incremental Term Loans will be used to fund a portion of the
Dorna Acquisition. The funding of the Incremental Term Loans are
conditioned upon the scheduled consummation of the Dorna
Acquisition which is expected to close by year-end 2024. Following
this transaction, all necessary debt funding related to the Dorna
Acquisition has been secured.
Forward-Looking Statements
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including without limitation, statements about the funding
of the Incremental Term Loans and the consummation of the Dorna
Acquisition. These forward-looking statements involve many risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statements,
including, without limitation, the ability to fund the Incremental
Term Loans and consummate the Dorna Acquisition. These
forward-looking statements speak only as of the date of this press
release, and Liberty expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
its expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Please refer to the publicly filed documents of Liberty, including
the most recent Forms 10-K and 10-Q, for additional information
about Liberty and Formula 1 and about the risks and uncertainties
related to Liberty’s business (including Formula 1) which may
affect the statements made in this press release.
About Liberty Media Corporation
Liberty Media Corporation operates and owns interests in a broad
range of media, communications, sports and entertainment
businesses. Those businesses are attributed to two tracking stock
groups: the Formula One Group and the Liberty Live Group. The
businesses and assets attributed to the Formula One Group (NASDAQ:
FWONA, FWONK) include Liberty Media’s subsidiaries Formula 1 and
Quint, and other minority investments. The businesses and assets
attributed to the Liberty Live Group (NASDAQ: LLYVA, LLYVK) include
Liberty Media’s interest in Live Nation and other minority
investments.
About Formula 1
Formula 1® racing began in 1950 and is the world’s most
prestigious motor racing competition, as well as the world’s most
popular annual sporting series. Formula One World Championship
Limited is part of Formula 1® and holds the exclusive commercial
rights to the FIA Formula One World Championship™. Formula 1® is a
subsidiary of Liberty Media Corporation, attributed to the Formula
One Group tracking stock (NASDAQ: FWONA, FWONK). The F1 logo, F1
FORMULA 1 logo, FORMULA 1, F1, FIA FORMULA ONE WORLD CHAMPIONSHIP,
GRAND PRIX, PADDOCK CLUB and related marks are trademarks of
Formula One Licensing BV, a Formula 1 company. All rights
reserved.
For more information on Formula 1® visit www.formula1.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240919944512/en/
Liberty Media Corporation Shane Kleinstein, 720-875-5432
Liberty Media (NASDAQ:LLYVK)
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