CPP invests in F1, MotoGP racing properties
Canada's national pension plan has made investments in two international sports properties, the company that runs the MotoGP motorbike racing series, and a debt deal with the company that owns the Formula 1 car racing league.
The Canada Pension Plan Investment Board announced the two transactions separately on Friday.
In the first, CPP announced it has taken a 39 per cent stake in Dorna Sports, an event management, media and marketing company with global rights to the MotoGP motorcycle racing series until 2036.
"We look forward to working together with Dorna’s CEO, Carmelo Ezpeleta, his management team and Bridgepoint to continue Dorna’s global growth and to pursue exciting opportunities to expand into emerging markets," said Andre Bourbonnais, a vice-president with CPP's private investments unit.
CPP did not disclose the financial value of the investment, but noted it is expected to close in the fourth quarter of 2012.
In the second transaction, CPPIB Credit Investments signed a debt agreement with Formula One Group to finance $400 million US of a $1-billion high-yield loan.
The loan is set to expire in 2019, but CPP didn't disclose what the yield on the loan would be.
"This transaction is an excellent opportunity for CPPIB to participate in a long-term loan facility with attractive risk-adjusted returns involving an iconic global sports management brand that is superbly positioned for continued growth," Bourbonnais said.
Formula One Group holds the race promotion, broadcasting, advertising and sponsorship rights for the FIA Formula One World Championship.