Man Untied

[Atlas]

http://news.bbc.co.uk/1/hi/business/8475317.stm

Manchester United has successfully raised £504m through a bond issue, which will cover most of what the club owes to international banks.

The deal means the Premier League club will be able to pay off nearly all its outstanding debts of £509m.

It will face an annual interest bill of £45m a year on the bonds.

The sale comes after figures showed debts at the club's parent firm, Red Football Joint Venture, rose to £716.5m ($1.17bn) in the year to June 2009.

Pounds and dollars

The bond was sold in two tranches, one of £250m with a coupon rate - or interest rate - to bond holders of 8.75%, and another tranche of $425m with a coupon rate of 8.375%.

However, unlike the debt at present secured against the club, the seven-year bonds will not mature until 1 February 2017.

The annual interest bill on the bonds is close to the £41.2m in interest paid in the last financial year.

But by converting the money owed to banks into a bond, it means the club will be free of the potentially strict financial conditions imposed by lenders.

On Thursday, it was confirmed that the club had signed a three-year sponsorship deal with Turkish Airlines to take over as the club's official carrier.





I was happy they were in soo much debt.
45million on interest is still loads though

 

[themn]

Don't really understand the bond/sale/branches blah blah but that's still some serious interest every year.

 

[Avmenon]

[quote author=Asim link=topic=38544.msg1041152#msg1041152 date=1264181339]
http://news.bbc.co.uk/1/hi/business/8475317.stm

Manchester United has successfully raised £504m through a bond issue, which will cover most of what the club owes to international banks.

The deal means the Premier League club will be able to pay off nearly all its outstanding debts of £509m.

It will face an annual interest bill of £45m a year on the bonds.

The sale comes after figures showed debts at the club's parent firm, Red Football Joint Venture, rose to £716.5m ($1.17bn) in the year to June 2009.

Pounds and dollars

The bond was sold in two tranches, one of £250m with a coupon rate - or interest rate - to bond holders of 8.75%, and another tranche of $425m with a coupon rate of 8.375%.

However, unlike the debt at present secured against the club, the seven-year bonds will not mature until 1 February 2017.

The annual interest bill on the bonds is close to the £41.2m in interest paid in the last financial year.

But by converting the money owed to banks into a bond, it means the club will be free of the potentially strict financial conditions imposed by lenders.

On Thursday, it was confirmed that the club had signed a three-year sponsorship deal with Turkish Airlines to take over as the club's official carrier.





I was happy they were in soo much debt.
45million on interest is still loads though
[/quote]

I hate these threads.

I long for the day when I read about the end of The Scum and it actually fucking happens.

 

[Gerry_A_Trick]

[quote author=Ryan link=topic=38544.msg1039646#msg1039646 date=1264034881]
You've spelt 'United' wrong.
[/quote]

I had assumed that was on purpose...

 

[Jack D Rips]

Does this mean that they now owe the money to individuals rather than the banks? But at a lower interest rate

 

[Delinquent]

[quote author=Avmenon link=topic=38544.msg1041162#msg1041162 date=1264182218]
[quote author=Asim link=topic=38544.msg1041152#msg1041152 date=1264181339]
http://news.bbc.co.uk/1/hi/business/8475317.stm

Manchester United has successfully raised £504m through a bond issue, which will cover most of what the club owes to international banks.

The deal means the Premier League club will be able to pay off nearly all its outstanding debts of £509m.

It will face an annual interest bill of £45m a year on the bonds.

The sale comes after figures showed debts at the club's parent firm, Red Football Joint Venture, rose to £716.5m ($1.17bn) in the year to June 2009.

Pounds and dollars

The bond was sold in two tranches, one of £250m with a coupon rate - or interest rate - to bond holders of 8.75%, and another tranche of $425m with a coupon rate of 8.375%.

However, unlike the debt at present secured against the club, the seven-year bonds will not mature until 1 February 2017.

The annual interest bill on the bonds is close to the £41.2m in interest paid in the last financial year.

But by converting the money owed to banks into a bond, it means the club will be free of the potentially strict financial conditions imposed by lenders.

On Thursday, it was confirmed that the club had signed a three-year sponsorship deal with Turkish Airlines to take over as the club's official carrier.





I was happy they were in soo much debt.
45million on interest is still loads though
[/quote]

I hate these threads.

I long for the day when I read about the end of The Scum and it actually fucking happens.
[/quote]

Do you really though? I've often thought about how I'd feel if they went under.

Don't get me wrong, I hate them with a passion, but that's what football rivalry is all about, isn't it? I don't think I'd want to deprive myself of the two biggest games of the season.

 

[Avmenon]

Sad to say, I do...I'd love to see them taste some despair.

It was one thing to watch them win everything in sight; but there was always hope we'd be back.

This season has been tough to take, tho.

 

[Atlas]

[quote author=themn link=topic=38544.msg1041160#msg1041160 date=1264181775]
Don't really understand the bond/sale/branches blah blah but that's still some serious interest every year.
[/quote]

I await someone who knows that the frick all this means, cos I also have no clue.
Also it might be some serious interest each year but then again it might just be about normal for a top prem football club? I have no clue, I really should have paid more attention to Roscos posts

 

[Loch Ness Monster]

Rosco? Where are you?

 

[Rosco]

[quote author=Loch Ness Monster link=topic=38544.msg1041202#msg1041202 date=1264185624]
Rosco? Where are you?
[/quote]

I was in London matey.

I went to the Emirates and saw some real football played on Wednesday night. I'm now a closet Gooner.

 

[Stulikesdrums]

Did you have a good time Rosco?

 

[the count]

[quote author=Rosco link=topic=38544.msg1041207#msg1041207 date=1264186041]
[quote author=Loch Ness Monster link=topic=38544.msg1041202#msg1041202 date=1264185624]
Rosco? Where are you?
[/quote]

I was in London matey.

I went to the Emirates and saw some real football played on Wednesday night. I'm now a closet Gooner.
[/quote]

I can introduce you to dubgooner if you like.
You might have a bit in common.

 

[Le Chacal]

I think its a new loan with a much lower interest rate.

 

[themn]

[quote author=Rosco link=topic=38544.msg1041207#msg1041207 date=1264186041]
[quote author=Loch Ness Monster link=topic=38544.msg1041202#msg1041202 date=1264185624]
Rosco? Where are you?
[/quote]

I was in London matey.

I went to the Emirates and saw some real football played on Wednesday night. I'm now out of the closet .
[/quote]

Fair enough, I suppose.

 

[Rosco]

[quote author=Jack D Rips link=topic=38544.msg1041166#msg1041166 date=1264182759]
Does this mean that they now owe the money to individuals rather than the banks? But at a lower interest rate
[/quote]

It was said that a lot of the bonds were snapped up by pension funds and other investment groups.

 

[Rosco]

United have basically borrowed from Peter to pay Paul. They still have a lot of debt to pay off, but they've managed to get the level of interest down and the Glazers have gotten rid of the terms that were imposed on them by the banks previously. They weren't allowed to take money out of United under the previous terms but now they aren't restricted by that and I think the prospectus they put out for the bond holders mentioned they intended to take out £70m this year. And that was going to be used to pay some of the loans the Glazers are personally on the hook for (£216m).

Ryan posted one of David Conn's articles on United, he has written a series of articles on them recently. Well worth reading for the information contained in them but not very interesting to most people I'd imagine. He confirmed in one of them that the Ronaldo money was used to pay interest on the loans.

United are at a bit of crossroads, even with all the success they've had, the commercialisation of the brand, the ratcheting up of ticket prices, they still struggle to keep their heads above water. Their net spend under the Glazer is about zero. It's going to take some Ferguson magic to keep them at the top of the table, that's if he doesn't get fed up with it all and give up.