Formula One to pay CVC $1 bln dividend

Motor racing group Formula One (F1) will pay its private equity owner CVC Capital Partners CVC.UL 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. [caption id=“attachment_257336” align=“alignleft” width=“380” caption=“The refinancing will extend the looming 2013 maturity of the loans until 2017. Reuters”] [/caption] 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. Earlier it was reported that Formula One, the top global motor racing series, is considering options for a stock market listing, as media reports put Singapore on the map as its preferred location for the float. A Singapore listing for F1 would potentially make it the second major sports brand to look at the wealthy Southeast Asian city-state after English Premier League soccer club Manchester United considered a $1 billion (629 million pounds) Singapore IPO late last year. Reuters