Madison Square Garden gets $1.35 billion amended, restated facilities

By Sarah Lizee

Olympia, Wash., Oct. 15 – Several Madison Square Garden Co. entities entered into a credit agreement with JPMorgan Chase Bank, NA as administrative agent on Oct. 11, providing for a $1.1 billion term loan and a $250 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The new credit agreement amends and restates the prior credit agreement dated Sept. 28, 2015.

The facilities mature Oct. 11, 2024.

Proceeds from the term loan were used to repay debt under the existing agreement, and revolver proceeds will be used to fund working capital needs and for other general corporate purposes.

Up to $35 million of the revolver is available for the issuance of letters of credit.

Interest is Libor plus 125 basis points to 225 bps, based on a total net leverage ratio. Initially, interest is Libor plus 150 bps.

There is a commitment fee that ranges from 22.5 bps to 30 bps, which is also based on leverage.

The initial term loan will amortize quarterly from March 31, 2020 through Sept. 30, 2024, with the outstanding principal amount to be paid at maturity.

JPMorgan, BofA Securities, Inc., MUIFG Bank, Ltd., Bank of Nova Scotia, Wells Fargo Bank, NA, Fifth Third Bank, SunTrust Robinson Humphrey, Inc. and TD Bank, NA are joint bookrunners. BofA, MUFG, Scotiabank and Wells are co-syndication agents. Fifth Third, SunTrust and TD are co-documentation agents.

New York-based Madison Square Garden builds sports, media and entertainment brands.

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