TKO Group Refinances Term Loan with $14B Seventh Amendment to Credit Facility
The sports and entertainment company executed its latest credit agreement modification, introducing new Term B-7 loans while reducing revolving credit rates.
TKO Executes Seventh Credit Refinancing
TKO Group Holdings disclosed in its latest quarterly filing that subsidiary TKO Worldwide Holdings completed a seventh refinancing amendment to its first lien credit agreement on May 28, 2026, the latest in a series of modifications to a credit facility originally established in August 2016 (10-Q filing, 2026-08-03).
The amendment creates a new class of Term B-7 loans "in an aggregate principal amount equal to the aggregate principal amount of Term B-5 Loans... outstanding immediately prior to the Seventh Refinancing Amendment Effective Date" (10-Q filing, 2026-08-03). The structure allows existing Term B-5 lenders to exchange their positions for the new Term B-7 loans on a cashless basis, while new lenders provide additional funding to repay any non-exchanged term loans.
Lender Syndicate and Reduced Revolving Rates
Goldman Sachs Bank USA serves as administrative agent, with a syndicate of ten institutions acting as joint lead arrangers and bookrunners, including Citibank, Deutsche Bank Securities, HSBC Securities, KKR Capital Markets, Morgan Stanley Senior Funding, Barclays, BofA Securities, Royal Bank of Canada, and Wells Fargo Securities (10-Q filing, 2026-08-03).
Notably, the amendment also delivered benefits beyond the term loan refinancing. The filing states that "the Revolving Lenders party hereto... have agreed to reduce the Applicable Rate applicable to the Revolving Credit Commitments" (10-Q filing, 2026-08-03), suggesting improved pricing terms on the company's revolving credit facility.
Technical Terms and Initial Interest Period
The new Term B-7 loans are structured as a "Term SOFR Borrowing with an initial Interest Period beginning on the Seventh Refinancing Amendment Effective Date and ending on August 26, 2026" (10-Q filing, 2026-08-03), indicating the loans are benchmarked to the Secured Overnight Financing Rate rather than legacy LIBOR.
The amendment required extensive documentation, including organizational certificates, board resolutions, legal opinions from Simpson Thacher & Bartlett and Snell & Wilmer, and beneficial ownership certifications under anti-money laundering regulations (10-Q filing, 2026-08-03).
Credit Agreement History
The original credit agreement has been modified fourteen times since its 2016 inception, with six refinancing amendments occurring since January 2021 alone (10-Q filing, 2026-08-03). This frequent refinancing activity suggests the company has actively managed its capital structure amid changing market conditions and potentially favorable lending terms.
According to MarginX data, TKO is expected to report third-quarter 2026 results on November 6, with recent insider activity showing sales by director Nick Khan totaling approximately 16,297 shares across three transactions.
The $14 billion market cap company, trading at $183.91 as of its last close, operates in the sports and entertainment sector following the 2023 merger of UFC and WWE under Endeavor Group Holdings' umbrella.
This article was generated by MarginX from the 10-Q filing on 2026-08-03. It is not investment advice.