Major League Baseball has issued $276.85 million of notes from its MLB Club Trust, according to Fitch Ratings.
The deal consists of $65.35 million of series 11 term notes due 2020; $47.35 million series 12 term notes due 2023; $127.4 million series 13 term notes due 2025; $22.75 million of series 14 term notes due 2020; $7 million series 15 term notes due 2023; and $7 million of series 16 term notes due 2025.
The notes are supported by pledged revenues from national broadcasting contracts with investment grade counterparties.
Fitch has assigned ‘A’ ratings to the notes, in line with its rating on the trust’s approximately $801 million of outstanding term notes series 1 - 10 and the outstanding approximately $800 million syndicated revolving credit facility.
Fitch upgraded its rating on the trust to ‘A’ from ‘A-‘ in July, citing “a material reduction in projected leverage in the near-to-medium term for the trust securitization as a result of the 2012 renewal of television contracts at extremely favorable levels.”
Proceeds from MLB's Club Trust Securitization series 11 - 16 senior secured term notes will provide 10 MLB clubs with additional funding for general corporate purposes.