Formula One’s $1.38 billion term loan used to refinance the company’s existing credit facilities rose in initial trading.
The loan maturing in 2017 first changed hands at 99.75 cents on the dollar after being sold to investors at 99 cents, according to information provider Markit Group Ltd.
The auto-racing series owned by CVC Capital Partners Ltd. cut the interest margin on the loan by 50 basis points to 450 basis points more than the London interbank offered rate after lenders offered more than the company had sought, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
The term loan is part of $2.27 billion in new credit facilities Formula One put in place to refinance the existing $2.92 billion in loans maturing in 2013 and 2014.