SEC Filing – WWE sets up new $150 million credit facility

The day after reporting Second Quarter 2016 earnings, WWE announced a new line of credit through JPMorgan Chase Bank in an SEC filing.

The new unsecured revolving credit facility is valued at $150 million, which WWE can borrow against “from time to time up to an aggregate of $150 million.”

It’s a five-year credit facility that was officially entered into on Friday (July 29) and expires on July 29, 2021.

The new credit line replaces WWE’s previous credit facility of $200 million that was set to expire on September 9.

WWE’s new credit line comes with better terms on the borrowing rate and debt-to-profit requirements.

JPMorgan Chase Bank is the primary lender. Four other banks are included as providing a commitment to the credit facility.

• JPMorgan: $50 million
• RBS Citizen: $30 million
• Citibank: $30 million
• Bank of America: $20 million
• People’s United Bank: $20 million
• TOTAL COMMITMENT: $150 million

As part of the credit application disclosed in the SEC filing, WWE made note of litigation they are faced with that could affect their ability to maintain the credit line.

The litigation WWE referenced was the ongoing concussion lawsuit in Connecticut court (Schedule 4.6). WWE disclosed: “Except as set forth on Schedule 4.6, no litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened in writing by or against any Group Member or against any of their respective properties or revenues (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or (b) that could reasonably be expected to have a Material Adverse Effect.”

In the Schedule 4.6 (labeled Schedule 4.7), WWE disclosed the timeline of events in the multiple concussion lawsuits that have been consolidated into Vito LoGrasso and Evan Singleton’s claims against WWE.

Similar to what WWE disclosed in their 10-Q quarterly filing on Thursday, WWE maintained their position that: “The company believes all claims and threatened claims against the company in these various lawsuits are being prompted by the same plaintiffs’s lawyer and are without merit. The Company intends to continue to defend itself against these lawsuits vigorously.”