Loarre Investments/La Liga sets initial talk in €850 million two-part secured notes offering

By Paul A. Harris

Portland, Ore., May 11 – Loarre Investments Sarl circulated initial price talk in its €850 million offering of seven-year senior secured notes (Ba3//BB) supporting the capitalization of Spanish soccer organization La Liga by CVC Capital Partners, according to market sources.

A tranche of fixed-rate notes with three years of call protection has initial guidance in the 7% area.

A tranche of floating-rate notes with one year of call protection is initially guided with a 500 basis points spread to Euribor, with no Euribor floor, at 97 to 98.

Tranche sizes remain to be determined.

The deal could price as early as Thursday, a source said.

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).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.