Liberty Media tuck into Formula 1 debts

Liberty media

Liberty Media announced today that it intends to launch a process to refinance the $3,302 million first lien term loan of certain subsidiaries of Delta Topco Limited, the Liberty subsidiary which holds all of its interests in Formula 1, the iconic global motorsports business.

Concurrent with the refinancing, the relevant subsidiaries of Delta Topco Limited intend to repay up to $400 million of the first lien term loan using a combination of excess cash on the balance sheet and loans under the first lien revolving credit facility, subject to obtaining necessary consents and funding of the relevant loans.

As of December 31, 2017, the first lien revolving credit facility was undrawn. The contemplated transaction will be net leverage neutral and the refinanced term loan will remain non-recourse to Liberty. Delta Topco Limited and its subsidiaries, together with the debt described herein, are attributed to the Formula One Group tracking stock.