UFC issues $600M add-on term loan in-line with talk; terms

Ultimate Fighting Championship Ltd. (UFC Holdings) has issued a $600 million fungible add-on to its covenant-lite first-lien term loan due April 2026 (L+275, 0.75% Libor floor) that priced in-line with talk at an original issue discount of 99.05 via a Goldman Sachs-led arranger group, according to sources. Note that existing pricing includes a step-up to L+300 when first-lien net leverage is greater than or equal to 3.5x. There was around $2.45 billion of the existing TLB outstanding when it was repriced in January. Proceeds from the add-on will be used to fund a distribution to UFC's parent and for general corporate purposes, which may include strategic M&A. UFC Holdings is a mixed martial arts organization based in Las Vegas. The company is backed by Silver Lake Partners, KKR and MSD Capital.

Terms: