Endeavor said in a filing with the SEC that it plans to use proceeds from an IPO to raise “at least $1.75 billion” to purchase the chunk of UFC it doesn’t already own.
The media and entertainment conglomerate tapped UFC’s $150 million revolving credit line last year, as the pandemic had a “significant impact” on operations. Endeavor also highlighted how UFC and Professional Bull Riders, another entity it owns, “were two of the first sports organizations to responsibly return” to action last spring. The company owns sports/entertainment powerhouse IMG as well.
No date or price for the IPO was listed in the filing, although the stock is set to be traded on the New York Stock Exchange under the ticker “EDR.”
Endeavor currently owns 50.1% of UFC. Private equity firms Silver Lake and Kohlberg Kravis Roberts — companies that were part of the $4 billion purchase from brothers Frank and Lorenzo Fertitta in 2016 — hold the rest.
Endeavor’s current debt load is $5.7 billion, according to the filing. In 2020, the company saw revenues of $3.47 billion with a net loss of $625.3 million.
In another major reveal, Tesla CEO Elon Musk is set to join Endeavor’s board of directors. Musk was selected “because of his professional background and experience running a public company,” the filing read.
Headed by Hollywood super-agent Ari Emanuel, Endeavor planned an IPO in 2019, but the effort was halted after other companies like Uber and Peloton faltered when they went public.