United refinancing saves GBP28m
Posted in News on Tuesday July 18th, 2006 11:29am
From the Manchester Evening News:
According to the Financial Times, the club’s improving financial prospects enabled it to halve to £135 million the amount it owes in the form of “risky” payment-in-kind notes held by three hedge fund investors.
The notes were accruing interest at £63 million a year and could have forced the Glazers to hand over part of their stake if they were not fully repaid.
As a result, Manchester United’s annual interest charge will fall to £62 million, compared with £90 million previously, although overall borrowings will rise from £580 million to £660 million, the report said.
In the past year, the club’s prospects have been boosted by a four-year sponsorship deal with insurance group American International Group, while the capacity of its Old Trafford stadium has been extended to 76,000.
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