Endeavor stakeholders can exhale, as the company secured a $260 million loan, according to the Wall Street Journal. Oaktree Capital Group agreed to purchase the largest piece of the loan, which was arranged by JPMorgan Chase, and carries an interest rate just under 11%.
Endeavor’s revenue has dropped nearly 70% after the coronavirus pandemic halted film production, concerts and sporting events. The UFC – of which Endeavor owns 51% – held its first fight back from hiatus on Saturday, with several more planned this month in order to meet benchmarks necessary to collect $500 million in fees from its ESPN deal.
Last year, Endeavor had more than $400 million in EBITDA. With mass cost-cutting measures, WSJ reports the company should have between $150 million and $200 million in profits this year, excluding the UFC. The report also suggests Endeavor might take another run at an IPO after the current crisis; the company withdrew a public listing effort last year.