Formula One to Pay CVC $1B Dividend

Motor racing group Formula One will pay its private equity owner CVC Capital Partners a dividend of around $1 billion from cash on the company’s balance sheet as part of a loan refinancing, Reuters reported on Tuesday.

(Reuters) – Motor racing group Formula One (F1) will pay its private equity owner CVC Capital Partners a dividend of around $1 billion from cash on the company’s balance sheet as part of a loan refinancing, investors said on Tuesday.

 

The dollar-denominated dividend recapitalisation and loan refinancing and maturity extension could still be a precursor to an initial public offering (IPO) of some of the company, one investor said.

 

The refinancing will extend the looming 2013 maturity of the loans until 2017, sources said. It will offer investors a margin of 500 basis points (bps) over LIBOR, with a LIBOR floor of 125bp to guarantee returns for investors, they added. (Reporting by Tessa Walsh; Editing by Hans-Juergen Peters)