Learfield recapitalizes, reduces debt by over $600 million
In a decisive win for the company’s future, Learfield reduced its outstanding debt by over $600 million while securing $150 million in new equity investment. The leading college sports right holder is now firmly positioned to capitalize in the space.
Learfield’s debt had accumulated over time, but specifically from three distinctive reasons. The Texas-based firm’s spending on acquisitions which ultimately led to a merger with IMG College in 2018. The COVID-19 pandemic brought much of college sports to a halt including fans in seats. Contracts with institutional partners that were structured over market value also proved to be notable, too.
According to Learfield’s website, the company works with nearly 200 Division I athletic programs and conferences through exclusive multimedia rights deals.
“This is a seminal moment for the Learfield team, and we are thrilled for what lies ahead – both for our company, as well as for the thousands of partners we serve,” Learfield president and CEO Cole Gahagan said in a statement. “Over the last several years, Learfield has been a leader in innovation and growth throughout the college sports and entertainment industries, and this reboot of our capital structure only positions us for even greater success in the years to come. We’re just getting started.”
Learfield secures new equity investment
Learfield operates with five divisions: LEARFIELD Amplify, CLC, Paciolan; Sidearm Sports and its multimedia rights business. With the new $150 million investment, the company plans to grow in these five aspects across the business.
As part of the deal, Learfield’s majority ownership is now comprised of multiple capital providers – Clearlake Capital, Charlesbank Capital Partners and funds managed by Fortress Investment Group. Prior equity holders Endeavor, Silver Lake and Atairos remain a minor equity stake in Learfield.
Learfield consulted multiple advisors throughout the debt restructuring process:
- Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal advisors
- Moelis & Company LLC served as investment banker
- Alvarez & Marsal served as financial advisor
- C Street Advisory Group served as strategy and communications advisor
- Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor
- Centerview Partners LLC served as investment banker
- Sidley Austin LLP served as legal advisor to Clearlake
“We are excited to work with Cole and the Learfield leadership team and support their strategic vision,” Clearlake’s James Pade said. “We believe that this transaction, Clearlake’s O.P.S. resources, and the new capital provided will advance Learfield’s position in college athletics and fuel the Company’s ability to create opportunities for schools and brands to build new communities and experiences for college sports fans.”
This is a developing news story