S&P Global Ratings reaffirmed UFC Holding’s first lien “B+” rating after news of seeking $100 million in additional loans. Due to its high leverage, S&P rated UFC Holdings, LLC as having a negative outlook. For a definition of S&P’s ratings, look here. A “B” rating is characterized as, “more vulnerable to nonpayment than obligations rated […]
financial
UFC looking for more loans
The UFC is seeking to raise $100 million in incremental loans to repay the previous owners (i.e. Frank and Lorenzo Fertitta and Flash Entertainment) in the case of a potential earnings-based payout according to a report from Reuters. The payouts of $175M and $75M are due in the event of EBITDA milestones. According to the […]
WWE earnings for Q4 impress Wall Street
WWE set a 52 week record for stock price as it announced its end of year earnings for 2016 this past Thursday. According to its earnings call, WWE Network subscribers grew 14% to 1.41 million paid subscribers. Revenue increased 11% to a company record $729.2 million. Per a company press release, “[T]he Company reported Net […]
WSJ article notes UFC sale as example of questionable buyout-loan strategy
The Wall Street Journal reports on the UFC sale and how the structure of the deal is being seen as too liberal with adjustments to earnings which enables more borrowing for transactions. The Federal Reserve had warned Goldman Sachs (Deutsche Bank AG is also a lender) the entity that marketed the debt to investors, of […]
Report: Fed cautioned Goldman Sachs about UFC deal
Bloomberg.com reports that the Federal Reserve bank cautioned Goldman Sachs Group, Inc. over debt risks in a deal it arranged to fund the $4 billion purchase of the UFC. Goldman Sachs was hired to market the debt to purchase the UFC this past July. Regulators have criticized deals that push a company’s debt load to […]