Goldman Sachs Group Inc (NYSE:GS). launched the sale of a $1.7 billion leveraged loan this Thursday, aimed at supporting Formula 1's efforts to reprice an existing loan. With a maturity period of seven years, the lender's call for the loan is scheduled for 11 a.m. New York time, with commitments anticipated by September 27 at 10 a.m. New York Times.
The initial pricing for the loan is expected to be approximately 225 to 250 basis points above the Secured Overnight Financing Rate, as per an anonymous source familiar with the matter. This move comes in response to increasing market trends focusing on opportunistic deals such as repricings and refinancings. Leveraged loan borrowers and their bankers are looking to capitalize on the current wave of positivity in credit markets.
The past year and a half has seen a slowdown in M&A financing, leading to an accumulation of investor capital. This has subsequently spurred an increase in investors’ appetite for deals. Last week, Restaurant Brands International Inc. (NYSE:QSR), owner of fast-food chains like Burger King and Popeyes, executed the largest transaction in the US leveraged loan market since early 2022. The company sold a $5.175 billion loan to refinance debt due in 2026, successfully expanding the deal twice and securing tighter pricing.
Formula 1 holds exclusive commercial rights to the Fédération Internationale de l’Automobile Formula One World Championship, which features its drivers, managers, and team owners in the popular Netflix (NASDAQ:NFLX) docuseries Formula 1: Drive to Survive.
When approached for comments on the matter, representatives for Goldman Sachs elected not to comment while those for Formula 1 did not respond immediately.
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