TKO Raises Forecast, Prices $1 Billion Secured Notes
Companies weighing secured debt to fund buybacks should compare the cost of borrowing against returns to shareholders.
Updated on Nov. 6, 2026 in Corporate Finance
TKO Group Holdings raised its 2026 revenue and adjusted EBITDA forecasts for the second time this year and priced $1 billion in 6.5% senior secured notes due 2031. The notes were issued through indirect subsidiary TKO Worldwide Holdings, LLC, and the company is positioned to keep buying back its own stock.
Why it matters
Raising guidance twice in one year while adding secured debt signals that management expects sustained demand for its live events and media rights, and that it is comfortable carrying more leverage to fund buybacks. For operators, the move shows how a company with growing cash flow can lean on debt markets rather than retained earnings to return capital.
TKO reported quarterly revenue of $1.36 billion, up 21% from a year earlier, and quarterly net income of $277.9 million. The company ended the quarter with $4.647 billion in gross debt against $630.9 million in cash and cash equivalents.
The players
TKO Group Holdings
TKO Group Holdings is a sports and entertainment company that operates live events and media rights businesses, including WWE and UFC, and is listed on the New York Stock Exchange.
TKO Worldwide Holdings, LLC
TKO Worldwide Holdings, LLC is an indirect subsidiary of TKO Group Holdings through which the senior secured notes were issued.
The details
TKO's raised forecast pairs higher expected revenue and EBITDA with a new $1 billion secured note issue at 6.5%, due 2031. The notes carry a first-priority lien on the collateral backing TKO's current senior secured credit facilities, which gives lenders priority over that collateral. TKO expects to fund the remaining roughly $936 million of its $3 billion share repurchase authorization primarily with additional debt and cash on hand, so the buyback program is being financed with borrowing alongside operating cash.
Timeline
Aug. 2026: TKO issued its prior revenue and adjusted EBITDA forecast range.
Sept. 30, 2026: Quarter ended, the period for reported revenue and net income.
Nov. 4, 2026: Remaining repurchase authorization amount was measured at roughly $936 million.
Nov. 13, 2026: Expected closing date of the notes offering, subject to customary conditions.
Market Landscape
TKO's second upward guidance revision of 2026 places it among entertainment companies that are using live-event and media-rights growth to finance capital returns through secured debt. The company's own August forecast range served as the baseline that the November increase moved higher.
Operators tracking capital-markets activity should note that secured borrowing is increasingly being used to fund share repurchases, which raises the priority claims ahead of unsecured creditors. Finance teams at companies with similar live-event or media revenue should watch how rising debt levels interact with interest expense as new notes close.
The takeaway
The key operating signal is that TKO is funding buybacks with new secured debt rather than cash flow alone, so leverage and interest coverage are the metrics to track. Finance leaders should monitor the closing of the notes around Nov. 13 and the pace at which the remaining roughly $936 million in repurchases is executed.
What happens next
Closing of the $1 billion senior secured notes offering is expected on or about Nov. 13, 2026, subject to customary conditions.
Further reading
For broader context on how companies structure debt and capital returns, see Corporate Finance coverage in the United States.
Source note: This article includes information reported by TokenPost.
