Formula One is relying on its auto-racing dominance in Europe and a welcoming loan market to slash borrowing costs even as its chief executive may be charged with bribery and private-equity owners pull cash from the business.
The racing company is asking lenders to lower rates it agreed to pay eight months ago in exchange for permission to sell $1 billion of junk bonds that financed a dividend to CVC Capital Partners Ltd. and other private-equity owners. Chief Executive Bernie Ecclestone has been under investigation by German prosecutors for a bribery case tied to Bayerische Landesbank's sale of a stake in the company to CVC.
Formula One wants to trim the interest rate on a $1.33 billion loan to as little as 4.25 percent from 5.75 percent now as junk-rated companies capitalize on strong demand in the loan market to extract favorable terms from lenders. London-based Formula One's racing is popular with fans in Europe and the company's earnings last year rose as the region's economy contracted 0.2 percent.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
