LONDON (LPC) - Three banks have lined up a €920m leveraged loan financing to back the acquisition of a majority stake in Spanish sports rights group Imagina, banking sources said.
Chinese private equity firm Orient Hontai Capital agreed to buy a majority stake in Imagina for US$1bn, Reuters reported in October 2017, the latest deal from deep-pocketed Chinese investors to transform the Asian country into a global soccer powerhouse.
Deutsche Bank, Citi and Goldman Sachs are leading the debt financing, which is being shown to a select group of institutional investors before launching for general syndication in a couple of weeks, the sources said.
The financing comprises an €860m term loan B and a €60m revolving credit facility, the sources said.
Orient was not immediately available to comment on the financing.
Orient Hontai entered into exclusive talks with Imagina’s shareholders in May 2017, scooping a dozen other bidders, including French media group Vivendi, Chinese real estate and entertainment firm Dalian Wanda Group Co or US media company Liberty Media.
The deal was made at a multiple of 10 times 2016 Ebitda and valued the company at €1.6bn.
Imagina, usually just known as Mediapro after the name of one of its subsidiaries, has the rights to distribute the La Liga soccer championship, Europe’s third-richest league.
Chinese investors have been snapping up sports and entertainment assets abroad.
The acquisitions range from Swiss sports marketing firm Infront Sports & Media AG to Italian sports media rights company MP & Silva or soccer clubs Inter Milan and AC Milan.
Editing by Christopher Mangham