Legends Hospitality, a food, beverage, merchandise, retail, and stadium operations firm backed by Sixth Street Partners, is in talks with private credit firms led by Ares Management Corp and KKR & Co to finance its acquisition of venue and events management company ASM Global, according to a report by Bloomberg.
The report cites unnamed sources with knowledge of the matter as confirming that the lender group, which also includes Apollo Global Management Inc and Oaktree Capital Management, is in discussions over the provision of a $1.85bn financing package that would help pay for the takeover and refinance existing debt at both Legends and ASM.
Bloomberg’s sources also revealed that Ares is serving as administrative agent on the deal which would include a $1.55bn unitranche loan, a $100m delayed-draw term loan and a $200m revolver.
The unitranche is expected to pay interest of six percentage points over the Secured Overnight Financing Rate and would be issued at a discounted price of 97.5 cents on the dollar.
According to Legends’ website current clients include the New York Yankees, the Dallas Cowboys and the Los Angeles Rams in the US clients, and Real Madrid, FC Barcelona, Liverpool FC, and Manchester City FC in Europe.
