The Braves have renegotiated some conditions on loans totaling hundreds of millions of dollars, team owner Liberty Media said Monday.
The announcement came two weeks after Liberty disclosed that the Braves’ revenue in the April-through-June quarter plummeted 95%, falling to $11 million from $208 million in the same period last year. The delayed MLB season started in late July, but many of the Braves’ revenue streams remain shut off as games are being played without fans in the stands amid the continuing coronavirus pandemic.
Liberty Media said in a news release Monday that agreements governing $297 million in Braves debt on Truist Park have been amended so that some financial covenants on the loans won’t apply until the quarter that ends Sept. 30, 2021. The company also said an $85 million credit facility, fully drawn by the Braves as of June 30, has been amended so that a covenant won’t apply until the quarter that ends March 31, 2022. Details of the covenants weren’t provided.
The amendments “require that certain conditions be met … including but not limited to minimum liquidity thresholds,” Liberty Media said. Separately, the Braves extended the maturity on a $100 million operating credit facility to December 2022. With the moves, the Braves and their subsidiaries currently are “in compliance with all debt covenants,” Liberty said.
On Aug. 10, Liberty Media said the Braves were working with lenders to obtain modifications on some of the team’s debt. As of June 30, the Braves carried total debt of $718 million.
The team posted an operating loss before amortization and depreciation of $26 million for the April-through-June quarter, compared with a profit of $62 million in the same period last year.
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