Inter Milan seek to secure debt refinancing deal by year-end – Source
Inter Milan aim to renew a bond of 375million euros ($ 459million) by the end of the year, a source familiar with the matter said, after the Serie A champions secured new financing thanks to an agreement with the investment company Oaktree Capital Group (OAK_pa.N).
Inter, controlled by Chinese retail giant Suning (002024.SZ), has been hit hard by the fallout from the COVID-19 pandemic as matches unfold in nearly empty stadiums and companies have reduced sponsorship budgets.
The restrictions on football club spending imposed by the Chinese authorities further complicated matters.
To shore up the club’s finances, Suning secured a € 275million funding deal with Oaktree last month, pledging Inter shares as collateral for the package. Read more
The ‘Nerazzurri’, who are cutting their payrolls to keep the business sustainable in the pandemic, said they would also start the process of refinancing the € 375million bond sold by the club’s media unit. which expires on December 31, 2022. The club have not given any specific details on when, other than the fact that they will begin the process in the coming months.
“Inter aims to get a refinancing deal in place a year before the bond matures, possibly at the end of October,” said the source, who declined to be named because the talks are not public.
Inter’s media unit, which manages the club’s media rights, sold a € 300m high yield bond in 2017, partially backed by club media revenues.
The unit sold an additional 75 million euros of this bond, which bears a 4.875% coupon, last year.
(1 USD = 0.8171 euro)
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