Loarre/La Liga hones talk in €850 million two-part notes offering; pricing expected Friday

By Paul A. Harris

Portland, Ore., May 12 – Loarre Investments Sarl set price talk in its €850 million two-part 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 €500 million tranche of fixed-rate notes with three years of call protection is talked with a 6½% coupon at 96.6 to yield 7 1/8%, at the wide end of earlier yield guidance in the 7% area.

A €350 million tranche of floating-rate notes with one year of call protection is talked with a 500 basis points spread to Euribor, with no Euribor floor, at 97. The spread and floor come atop early guidance. The price talk comes at the cheap end of the 97 to 98 early guidance.

Pricing is expected on Friday.

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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