Bridgepoint Seeks Interest Rate Reduction on Loans for Road Racing Manager
Bridgepoint asked lenders to accept lower interest on a loan its marketing for the manager of the MotoGP motorcycling championship, a person with knowledge of the negotiations said.
The U.K. buyout firm asked funds investing in seven-year term loans to Dorna Sports SL for a 75 basis-point reduction in the interest margin to 425 basis points, said the person, who declined to be identified because the terms are private. It proposed banks cut the margin on a six-year term loan and revolving credit by 25 basis points, also to 425 basis points.
James Murray, a spokesman for London-based Bridgepoint, declined to comment.
Societe Generale SA, Goldman Sachs Group Inc. and ING Groep NV are arranging the deal, which will include 360 million euros of term loans, $70 million of second-lien debt, and a 10 million-euro revolving credit line, according to data compiled by Bloomberg.
Bridgepoint bought a controlling stake in Madrid-based Dorna in 2006 from CVC Capital Partners Ltd. using $445 million of loans maturing between 2013 and 2016, the data show.
Dorna, founded in 1988, has been the exclusive commercial and television rights holder for the FIM Road Racing World Championship Grand Prix, known as MotoGP, since 1992. The company also markets Ad-Time, a rotating advertising board system, in Spain, Italy, Portugal, the U.K., South America and Japan, according to its website.
The margins are set over interbank lending rates in euros and dollars. A basis point is 0.01 percentage point.
Details of the refinancing are as follows:
Tranche Size Maturity Margin over Euribor TLA 85 million euros 6 years 425 basis points TLB 125 million euros 7 years 425 basis points TLC 150 million euros 8 years 525 basis points Second-lien $70 million 8.5 years RCF 10 million euros 6 years 425 basis points
To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net
To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net
Rate this Page