The UFC successfully combined two of its loans with the help of Goldman Sachs and KKR Capital.
According to SP Global, “Ultimate Fighting Championship, Ltd. Completed the repricing of its $2.453 billion term loan B due April 2026 that lowered the spread to L+300, with a 0.75% Libor floor, from L+325 with a 1% floor….” It goes on to report that the loan “was issued at par and has a 25-basis-point margin step-down when first-lien net leverage is lass than 3.5x, was quoted at 100.125/100.625.”
Libor is the benchmark interest rate at which major global banks lend to one another.
The combination of the $2.304 billion loan B and $150 million term loan B-2 will be put into a single $2.453 billion tranche.
Payout Perspective:
All of this means that Zuffa is saving money on interest by combining the two loans. It lowered its rate from L+325 with a 1% floor to L+300 with a 0.75 floor. While I have no insider knowledge of the deal, you can infer that the combination of loans means that Zuffa is doing well financially for it to secure this type of transaction. You might recall that the company faced a downturn in corporate debt this past spring as the COVID-19 concerns rose. One might assume that this restructuring
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