U.S. mixed martial arts (MMA) promoter and producer UFC Holdings LLC plans to issue an incremental $100 million first-lien term loan, increasing the size of its aggregate first-lien term loan due 2023 to $1.475 billion. UFC plans to use the proceeds from the add-on to partially fund an earn-out and other payments to selling shareholders under the 2016 purchase agreement, in the event the company hits the agreement's earn-out measure of EBITDA sometime this year. We are affirming our 'B' corporate credit rating on UFC Holdings LLC and our 'B+' issue-level rating on the company's upsized aggregate $1.475 billion first-lien term loan due 2023. The negative outlook reflects our assessment of UFC's significant leverage. UFC will rely heavily on EBITDA
