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| Debt |
(8)听听Debt Debt is summarized as follows:
2.25% Convertible Senior Notes due 2027 On August 12, 2022, 花都影视 issued $475 million convertible notes at an interest rate of 2.25% per annum, which, at 花都影视鈥檚 election, are convertible into cash, shares of Series C 花都影视 Formula One common stock or a combination of cash and shares of Series C 花都影视 Formula One common stock and mature on August 15, 2027 (the 鈥2.25% Convertible Senior Notes due 2027鈥). As of December 31, 2025, the conversion rate for the notes is approximately 12.0505听shares of Series C 花都影视 Formula One common stock per $1,000 principal amount of notes, equivalent to a conversion price of approximately $82.98听per share of Series C 花都影视 Formula One common stock. 花都影视 has elected to account for the notes using the fair value option. See note 6 for information related to unrealized gains (losses) on debt measured at fair value. Formula 1 Senior Loan Facilities On November 23, 2022, Formula 1 refinanced its previous Term Loan B and revolving credit facility with a new $725 million first lien Term Loan A, a refinanced $1.7 billion Term Loan B and a new $500 million revolving credit facility. On September 19, 2024, Formula 1 refinanced the Term Loan B with a new $1.7 billion Term Loan B and extended the maturities of the approximately $689 million Term Loan A and the $500 million revolving credit facility. In connection with the September 19, 2024 refinancing, Formula 1 also marketed an incremental $850 million of Term Loan B funding, which was in addition to an incremental $150 million of commitments to the Term Loan A obtained in April 2024 (collectively, the 鈥淚ncremental Term Loans鈥). The financing of the Incremental Term Loans closed on July 1, 2025 and was used to fund a portion of the MotoGP acquisition, as described in note 3. The Term Loan B, Term Loan A and revolving credit facility are collectively the 鈥淪enior Loan Facilities.鈥 The Term Loan A and revolving credit facility mature on September 30, 2029 and the Term Loan B matures on September 30, 2031. As of December 31, 2025, there were no outstanding borrowings under the $500 million revolving credit facility. The margin for the Term Loan B was originally 2.25%, was reduced to 2.0% on September 19, 2024 and permanently stepped down to 1.75% on November 5, 2025. 听The margin for the Term Loan A and facility is between 1.50% and 2.25% depending on leverage ratios, amongst other things. The reference rate for the Term Loan A, Term Loan B and dollar borrowings under the revolving credit facility is the Adjusted Term Secured Overnight Financing Rate (鈥鈥). The weighted average interest rate on the Senior Loan Facilities was approximately 5.36% and 6.19% as of December 31, 2025 and 2024, respectively. The Senior Loan Facilities remain non-recourse to 花都影视. The Senior Loan Facilities are secured by share pledges and floating charges over Formula听1鈥檚 primary operating companies with certain cross guarantees. Additionally, in order to manage the interest rate risk of its $3.3 billion Senior Loan Facilities, Formula听1 had $2.2 billion of interest rate swaps as of December 31, 2025, with a termination date in September 2031 and an early termination date in September 2029, at the option of the counterparty. MotoGP Credit Facilities On August 18, 2025, MotoGP refinanced its previous 鈧975 million Term Loan B with a new 鈧800 million Term Loan B with a maturity of August 18, 2032, previous 鈧150 million Term Loan A with a new $232.5 million Term Loan A with a maturity of August 18, 2030 and previous 鈧100 million multicurrency revolving credit facility with a new 鈧100 million multicurrency revolving credit facility with a maturity of August 18, 2030 (collectively, the 鈥淐redit Facilities鈥). Effective August 18, 2025, the margin for the Term Loan B was reduced from 3.25% to 2.75% (with a range of 2.25% to 2.75% depending on a leverage ratio) with a reference rate of the euro interbank offered rate (鈥淓URIBOR鈥), the margin for the Term Loan A was reduced from 2.50% to 1.75% (with a range of 1.50% to 2.00% depending on a leverage ratio) with a reference rate of Term SOFR and the margin for the revolving credit facility was reduced from 2.50% to 2.25% (with a range of 2.00% to 2.50% depending on a leverage ratio) with a reference rate of one of Term SOFR, the sterling overnight index average or EURIBOR based on the currency of the applicable borrowing. The weighted average interest rate on the Credit Facilities was approximately 5.01% as of December 31, 2025. The Credit Facilities remain non-recourse to 花都影视 and are secured by pledges of the equity interests, accounts and intercompany receivables of MotoGP. Debt Covenants The Formula 1 Senior Loan Facilities and the MotoGP Credit Facilities contain certain financial covenants, including a leverage ratio. Additionally, Formula听1鈥檚 debt, MotoGP鈥檚 debt and other borrowings contain certain non-financial covenants.
Fair Value of Debt Due to the variable rate nature of the Formula 1 Senior Loan Facilities and the MotoGP Credit Facilities, the Company believes that the carrying amount approximates fair value at December听31, 2025. Five Year Maturities The annual principal maturities of outstanding debt obligations for each of the next five years is as follows (amounts in millions):
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