July 17 (Bloomberg) -- The National Hockey League increased its credit facility to $600 million, up $200 million from the previous amount, according to data compiled by Bloomberg.
The league also received a better rate on the agreement with Citigroup Inc., which was completed last month. The new facility is priced at the London interbank offered rate, or Libor, plus 250 basis points. The previous facility was $400 million at Libor plus 300 basis points.
Professional sports leagues create loan pools by using collateral such as national broadcast contracts to secure credit at better terms than most teams could individually. The NHL locked out players at the start of last season in a collective bargaining dispute and played a 48-game campaign starting in January.
NHL spokesman Frank Brown declined in an e-mail to comment on whether the league increased its credit facility. Anthony Di Santi, managing director at Citi’s sports finance and advisory group, in a statement said the facility was “well received by the market, which is a reflection of the overall financial strength of the league.”
Libor is the rate banks say they charge on loans to each other.
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