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:
| Borrower | UFC |
| Issue | $600 million fungible add-on first-lien term loan |
| UoP | GCP |
| Spread | L+275 |
| Libor floor | 0.75% |
| Price | 99.05 |
| Tenor | April 2026 |
| YTM | 3.79% |
| Four-year yield | 3.82% |
| Call protection | N/A |
| Corporate ratings | B/B2 |
| Facility ratings | B/B2 (existing) |
| Recovery ratings | 3 (existing) |
| Financial covenants | None |
| Arrangers | GS/KKR/Barc/Citi/CS/DB/HSBC/MS/UBS |
| Admin agent | GS |
| Px Talk | L+275/0.75%/99-99.5 |
| Sponsor | Silver Lake Partners/KKR/MSD Capital |
| Notes | Margin steps up to L+300 when first-lien net leverage is 3.5x or greater. Tranche size now ~$3.05 billion. |