Shareholders to Spanish sports management company Dorna Sports are set to take a third payout from the company in six years as they prepare to launch an €889 million-equivalent (US$948.16 million) dividend recapitalization, banking sources said on Monday.
Bridgepoint bought Dorna in 2006 from CVC and in 2013, Canada Pension Plan Investment Board made a 39 percent equity investment in the company. In 2011, Dorna conducted a €420 million dividend recapitalization, followed by a €715 million dividend recapitalization in 2014.
“It’s a high performing company, a cash cow,” one of the sources said.
Bridgepoint declined to comment. CPPIB was not immediately available to comment.
BNP Paribas, Citigroup, JP Morgan, Nomura and Société Générale are leading the dividend recapitalization, which is set to pay between €200 million to €300 million as a dividend, the sources said.
A bank meeting took place in London on Monday to show the €889 million seven-year covenant-lite term loan to investors, which will include a carve out of up to US$90 million.
The loan is guided to pay 350bp over Euribor with a 0 percent floor and a 99.75 OID and lenders have been asked to commit to the deal by March 23, the sources said.
The financing will refinance a dual-currency €615 million term loan B, which included a small US$50 million carve-out, priced at 400bp, that was raised in the 2014 dividend recapitalization. That deal also included a €100 second-lien and a €10 million revolving credit facility.
Dorna holds exclusive global rights to organize the FIM Road Racing World Championship until 2041 and the FIM World Superbike Championship until 2036.
By Claire Ruckin
(Editing by Christopher Mangham)
Photo courtesy of Reuters