The NBA is promoting $193.2 million in senior secured notes, borrowing towards their nationwide media rights flows.
The NBA’s Hardwood Funding LLC subsidiary is promoting 4 tranches of debt in uneven parts of $60 million, $93.5 million, $20.8 million and $18.9 million. Based mostly on disclosures by Fitch Rankings, which charges the debt A-minus with a steady outlook.
Groups can elect to take advances of as much as $275 million from the league towards the flows, in accordance with info contained in reviews by Fitch Rankings.
The NBA now has $6.7 billion in debt with this week’s sale. A 12 months in the past, the NBA had $5.4 billion in excellent debt. In 2019, the league had $4.5 billion in debt.
The NBA ranking is much like the opposite main professional leagues in North America, though Main League Baseball and the Nationwide Soccer League keep lighter debt-to-annual income ranges of about two-to-one, whereas the NBA’s debt degree proper now could be about three-to-one.