MMA Fighting · Oct 9, 2016
Goldman Sachs reportedly cautioned due to large debt financed in UFC purchase
Bloomberg reported this week reported the Federal Reserve bank supervisors have issued a caution to Goldman Sachs Groups, Inc. regarding WME-IMG taking on more than $1.8 billion in debt financing in its purchase of the UFC from the Fertitta family.
The money was a combination of $1.4 billion for the actual sale of the company to get the bid up to the $4 billion valuation mark, plus another $425 million as part of the company's existing debt.
In August, when the first $500 million of the debt went up for sale, largely due to offering 8.5 percent interest, they went in an instant to 70 different investors, which included hedge and mutual funds.