Carey Says Liberty Media Has Eliminated $1B In Debt From F1 Operations

Formula 1 owner Liberty Media CEO Chase Carey "surprised everyone" when he announced that the company had eliminated an "extensive" $1B tier of debt associated with CVC's operation of F1, according to Graham Harris of MOTORSPORT WEEK. In revealing its interim financial figures for the second quarter of '17, Liberty Media revealed that F1 registered a 3% increase in revenue, up to $616M. Operating income fell from $90M to $45M, with sales, general and administrative expenses "all increasing by around" 33%. The debt repayment was financed by an initial equity offering that generated $388M "coupled with subsequent refinancing which has allowed the old CVC structured debt to be fully repaid." Carey said, "The combined effects will be to reduce annual interest expense by up to $90 million going forward" (MOTORSPORT WEEK, 8/11).