StubHub Extends Term Loans to 2033 and Cuts Borrowing Costs
StubHub Holdings, Inc. (NYSE:STUB) has pushed back the maturity dates on its $975 million U.S. dollar and €300 million euro Term Loan B facilities to October 2033. As part of the refinancing, the company reduced its interest rate spread by 25 basis points across both tranches, setting the U.S. dollar loan pricing at SOFR plus 450 basis points and the euro loan at EURIBOR plus 475 basis points. Additionally, a portion of its revolving credit facility maturity was extended to October 2031.
The transaction rebalances the company's currency debt exposure by shifting $171 million into U.S. dollars while reducing euro debt by €152 million. Cutting interest spreads decreases overall borrowing costs and immediately benefits cash flow, while extending maturities by three and a half years reduces near-term refinancing risks.
Investors will be watching to see if reduced interest costs improve free cash flow and financial guidance. This move follows a broader debt reduction strategy in which StubHub repaid $1.1 billion in debt over the past 12 months, earning a credit rating upgrade to B2 from Moody's.
Key points
- StubHub extended its $975 million USD and €300 million Euro Term Loan B maturities to October 2033.
- Interest rate spreads were cut by 25 basis points to SOFR plus 450 bps for USD and EURIBOR plus 475 bps for EUR loans.
- The company rebalanced currency exposure by adding $171 million in USD debt and lowering euro debt by €152 million.
- A portion of StubHub's revolving credit facility maturity was extended to October 2031.
- StubHub has repaid $1.1 billion in debt over the last 12 months and received a Moody's upgrade to B2.
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When do StubHub's extended term loans now mature?
StubHub extended the maturity dates for both its $975 million U.S. dollar and €300 million euro Term Loan B facilities to October 2033, moving them out by three and a half years.
How much did StubHub lower its borrowing costs?
StubHub reduced its interest rate spread by 25 basis points. Its U.S. dollar term loan rate is now SOFR plus 450 basis points, and its euro term loan rate is EURIBOR plus 475 basis points.
How much debt has StubHub repaid over the last year?
StubHub has repaid $1.1 billion in debt over the past 12 months, which contributed to a Moody's credit rating upgrade to B2.