Liberty Media Announces Closing of Refinancing of Portion of Formula 1 Debt
March 02 2017 - 6:30PM
Business Wire
Liberty Media Corporation ("Liberty Media") (Nasdaq: LSXMA,
LSXMB, LSXMK, BATRA, BATRK, FWONA, FWONK) announced today the
closing of the refinancing of the $3,102 million USD first lien
term loan executed by certain subsidiaries of Delta Topco Limited
(such subsidiaries herein referred to as “F1”), the Liberty Media
subsidiary which holds all of its interests in Formula 1, the
iconic global motorsports business. The terms provide for, amongst
other things, (i) a reduction in the margin for the USD term loan
from 3.75% to 3.25%, with the potential for a further reduction to
3.00% not earlier than 6 months after closing in the event of
certain credit rating requirements being met, and (ii) an extension
of maturity for the USD term loan (previously July 2021). Such
extension is to the earlier of February 2024 and 6 months prior to
the maturity of F1's second lien facilities (currently July 2022),
unless the second lien facilities are repaid in full (in which case
the maturity will be February 2024).
The transaction is net leverage neutral and the refinanced term
loan remains non-recourse to Liberty Media. Liberty Media had
previously announced that, concurrent with the financing, F1
intended to repay up to $300 million of the first lien term loan
using excess cash on the balance sheet. Given the demand for the
USD term loan and the higher interest rate under the syndicated
second lien facilities, F1 now intends to prepay $300 million of
the second lien term loan shortly after closing using excess cash
on the balance sheet.
Forward-Looking Statements
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements relating to the repayment of $300
million of the term loan under the second lien facilities agreement
and other matters that are not historical facts. 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. These forward-looking
statements speak only as of the date of this press release, and
Liberty Media expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein to reflect any change in Liberty Media's
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 Media,
including its most recent Annual Report on Form 10-K, for risks and
uncertainties related to Liberty Media's business 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 and entertainment businesses. Those
businesses are attributed to three tracking stock groups: the
Liberty SiriusXM Group, the Braves Group and the Formula One Group.
The businesses and assets attributed to the Liberty SiriusXM Group
(Nasdaq: LSXMA, LSXMB, LSXMK) include Liberty Media's interest in
SiriusXM. The businesses and assets attributed to the Braves Group
(Nasdaq: BATRA, BATRK) include Liberty Media's subsidiary Braves
Holdings, LLC. The businesses and assets attributed to the Formula
One Group (Nasdaq: FWONA, FWONK) consist of all of Liberty Media’s
businesses and assets other than those attributed to the Liberty
SiriusXM Group and the Braves Group, including Formula 1, Liberty
Media’s interest in Live Nation Entertainment, and minority equity
investments in Time Warner Inc. and Viacom.
About Formula 1
Formula 1®, which began in 1950, is the world's most prestigious
motor racing competition and is the world's most popular annual
sporting series. In 2016 it was watched by 400 million unique
television viewers from over 200 territories. The 2017 FIA Formula
One World Championship™ runs from March to November and spans 20
races in 20 countries across five continents. 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 (NASDAQ:
LSXMA, LSXMB, LSXMK, BATRA, BATRK, FWONA, FWONK) attributed to the
Formula One Group tracking stock.
For more information on Formula 1® visit www.formula1.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170302006467/en/
Liberty Media CorporationCourtnee Chun, 720-875-5420
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