MSG Networks comprehensive out-of-court debt restructuring

Davis Polk advised the administrative agent and a term loan lender to MSGN Holdings, L.P. (together with its subsidiaries and certain affiliates, “MSG Networks”) on a comprehensive out-of-court restructuring of more than $800 million of MSG Networks’ existing indebtedness. The transaction entailed, among other things, an $80 million cash payment by MSG Networks to the existing term loan lenders, an amendment to the existing term loan facility that resulted in $210 million of takeback term loans for existing term loan lenders, the issuance of certain contingent interest units to the existing term loan lenders that entitle the lenders to receive up to $100 million in the aggregate, and amendments to certain of MSG Networks’ media rights agreements.

MSG Networks, a subsidiary group of Sphere Entertainment Co., is an industry leader in production and content development, composed of two sports and entertainment networks (MSG Network and MSG Sportsnet) and MSG+, a state-of-the art streaming product. The networks’ wide range of content includes exclusive live local games and other programming of the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres, as well as significant coverage of the New York Giants and Buffalo Bills.

The Davis Polk restructuring team included partners Timothy Graulich and Angela M. Libby, counsel Michael Pera and associates Lara Luo and Eva (Luying) Wang. The finance team included partner Kenneth J. Steinberg and counsel Andrei Takhteyev. Counsel Ajay B. Lele provided corporate advice. The tax team included partner Corey M. Goodman and counsel Leslie J. Altus. All members of the Davis Polk team are based in the New York office.