New York Knicks close on five-year $200 million revolving facility

By Wendy Van Sickle

Columbus, Ohio, Oct. 6 – New York Knicks, LLC, a wholly owned subsidiary of the Madison Square Garden Co., entered into a five-year $200 million senior secured revolving credit agreement on Sept. 30, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus either 100 basis points or 112.5 bps, and the commitment fee is either 20 bps or 25 bps, depending on the Knicks’ credit ratings.

JPMorgan Chase Bank, NA, Bank of Nova Scotia and US Bank NA are the joint bookrunners; JPMorgan is administrative agent; Bank of Nova Scotia and US Bank are the co-syndication agents; and Bank of America, NA, Fifth Third Bank, SunTrust Bank, TD Bank, NA and Wells Fargo Bank, NA are the co-senior managing agents.

The revolver was undrawn at closing and will be available to the Knicks to fund working capital needs and for general corporate purposes.

All obligations under the credit agreement are secured by a first-lien security interest in certain of the Knicks’ assets, including, but not limited to the Knicks’ membership rights in the National Basketball Association and revenues to be paid to the Knicks by the NBA under certain U.S. national broadcast agreements.

The Knicks are required to make mandatory prepayments in certain circumstances, including without limitation if the maximum available amount under the facility is greater than 350% of qualified revenues.

The credit agreement matures on Sept. 30, 2021.

The professional basketball team is based in New York City.

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