Loarre Investments to sell €850 million secured notes backing CVC's capitalization of La Liga

By Paul A. Harris

Portland, Ore., May 5 – Loarre Investments Sarl is canvassing the accounts ahead of an expected €850 million offering of seven-year senior secured notes (//BB) to support the capitalization of Spanish soccer organization La Liga by CVC Capital Partners, according to market sources.

The deal features fixed-rate notes with three years of call protection and floating-rate notes with one year of call protection.

Tranche sizes remain to be determined.

Physical bookrunner Goldman Sachs will bill and deliver.

CVC Capital Partners is investing approximately €2 billion in La Liga clubs, which faced financial difficulties related to the coronavirus pandemic. In exchange, CVC will receive approximately 8.2% of La Liga's broadcasting audio-visual revenue and other minor commercial activities for 50 years.

La Liga will lend the cash to participating clubs, which will use 70% of it for growth investments, 15% to repay debt, and the remaining 15% in a budget related to players under the project framework of LaLiga Impulso (Boost LaLiga).

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