By Paul A. Harris
Portland, Ore., May 13 – Loarre Investments Sarl priced €850 million of seven-year senior secured notes (Ba3//BB) in two tranches on Friday, according to market sources.
The deal, which came to help finance the capitalization of Spanish soccer organization La Liga by CVC Capital Partners, featured a €500 million tranche of 6½% fixed-rate notes that priced at 96.605 to yield 7 1/8%. The fixed-rate notes priced in line with price talk that specified a 6½% coupon at 96.6 to yield 7 1/8%, but at the wide end of earlier yield guidance in the 7% area.
The deal also featured a €350 million tranche of Euribor plus 500 basis points floating-rate notes, with no Euribor floor, that priced at 97. The floating-rate notes priced on top of final coupon, floor and price talk; however, the issue price came at the cheap end of the 97 to 98 initial price talk.
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).
| Issuer: | Loarre Investments Sarl
|
| Amount: | €850 million
|
| Issue: | Senior secured notes
|
| Maturity: | May 15, 2029
|
| Physical bookrunner: | Goldman Sachs (bill and deliver)
|
| Trade date: | May 13
|
| Settlement date: | May 20
|
| Ratings: | Moody's: Ba3
|
| Fitch: BB
|
|
|
| Fixed-rate notes
|
| Amount: | €500 million
|
| Coupon: | 6½%
|
| Price: | 96.605
|
| Yield: | 7 1/8%
|
| Call protection: | Three years
|
| Price talk: | 6½% coupon at 96.6 to yield 7 1/8%
|
|
|
| Floating-rate notes
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| Amount: | €350 million
|
| Coupon: | Euribor plus 500 bps
|
| Euribor floor: | 0%
|
| Price: | 97
|
| Call protection: | One year
|
| Price talk: | Euribor plus 500 bps, no Euribor floor, at 97
|
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