Houston Limited Partners NFL Holdings, the 70% owner of the Houston Texans National Football League franchise, is refinancing its “A” and “B” loans into one “A” loan to cut interest costs. The new five-year, $219.75 million “A” loan will hit the market tomorrow at LIBOR plus 1 1/8. “The term ‘B’ was basically set up at a higher price and is primarily institutional,” a banker said. “It’s more structured like a term ‘A’ catered to banks because of the pricing.” The loan is still being offered to both new and existing lenders.
The old facility, which closed in January, comprised a $125 million “A” loan at LIBOR plus 1 3/4% and $100 million “B” loan at LIBOR plus 2%. The refinancing is being done at $219.75 million because the company has already made some amortization payments, the banker noted. SG American Securities and Societe Generale are arrangers on the deal and J.P. Morgan is co-lead arranger. Bankers at SG and J.P. Morgan either declined comment or did not return calls. Scott Schwinger, cfo of the Texans, did not return calls.