Canada Pension Plan Investment Board and Formula One Complete Debt Agreement
TORONTO, ONTARIO--(Marketwire - Oct. 26, 2012) - Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Credit Investments Inc., has completed a debt agreement with Formula One Group to finance US$400 million of a US$1.0 billion private high yield loan. The maturity date of the facility is 2019.
"This transaction is an excellent opportunity for CPPIB to participate in a long-term loan facility with attractive risk-adjusted returns involving an iconic global sports management brand that is superbly positioned for continued growth," said Andre Bourbonnais, Senior Vice-President, Private Investments, CPPIB.
Formula One Group is a global sports management organization that holds the race promotion, broadcasting, advertising and sponsorship rights for the FIA Formula One World Championship, one of the world's most widely watched annual sporting competitions with races held in countries across Europe, Asia-Pacific, the Middle East, North and South America.
"We successfully completed a financing agreement of this size, complexity and value owing to CPPIB's comparative advantages and internal expertise," said Mr. Bourbonnais.
CPPIB's diversified Private Debt portfolio includes investments across many sectors. Since its inception, the group has invested approximately C$9 billion of capital. With investments in the Americas, Europe and Asia, the team is focused on providing debt financing across the entire capital structure including term loans, high-yield bonds, mezzanine lending and other solutions for corporations.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2012, the CPP Fund totaled C$165.8 billion. For more information, please visit www.cppib.ca.
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