TOP 100 SOCCER SITES
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| Sunderland 1 Everton 1: match report Marouane Fellaini scores with five minutes remaining to ease Everton's relegation worries. telegraph.co.uk |
Inter Milan's Chivu recovering after surgery Inter Milan defender Cristian Chivu is in stable condition after surgery on his fractured skull. cbc.ca |
Spain's best is yet to come: Torres Spain has put its shocking Confederations Cup loss to the U.S. behind it and is firmly focused on the task at hand: winning the World Cup in South Africa. cbc.ca |
Glazer's United bond issue brings in £504m • No shortage of investors for MU finance bond• Seven-year scheme gives owners breathing spaceManchester United today successfully completed their controversial refinancing as expected, raising £504m that will be partly used to repay the onerous hedge fund loans taken out by the Glazer family to buy the club.It is understood that the bond issue, which has provoked a furious backlash from some fans as it laid bare a business model that has saddled the club and their owners with debts of £716.6m, was twice over-subscribed.The success of the MU Finance bond issue, combined with the fact that the interest (yield) that must be paid on it was within the hoped for range of the five banks that managed it, suggests that the club's argument that they could continue to grow revenues, invest in the squad and meet debt repayments was accepted by investors.The Manchester United chief executive, David Gill, has over the past fortnight led a global roadshow across Asia, Europe and the US to sell the idea to investors, arguing that the club's iconic brand and global commercial potential made them a safe bet despite the large debt they are carrying.While some traditional funds were unable to touch the bond because it was unrated, and some fund managers argued the club's debt made it too risky at the price, the issue was still oversubscribed by a factor of two.The money has been raised in two tranches – £250m at 8.75% and $425m at 8.375%. It will be used to pay off the £509.5m that United owe to four banks at an interest rate of just over 5%.The seven-year scheme will give the Glazers further breathing space to pay back the money they loaned to buy Manchester United and, crucially, allow them to use money from the club's cash flow to service their high interest £202m "payment in kind" debt that has been secured on their shareholding in it. The original loans had already reached £202m and were rolling up at 14.25% a year, a rate due to increase to 16.25% this summer.But, although the Glazers will now be able to reduce their own onerous hedge fund loans, it leaves the club carrying a debt that must be repaid at a higher interest rate over a longer term.The small print of the 322-page bond prospectus circulated to shareholders last week provided for the Glazers to channel up to £127m, including a one-off payment of £70m out of money raised from matchday income, TV contracts, sponsorship deals and transfer fees, to their parent company in the first year.Supporters were also alarmed at provisions that will allow the Glazers' parent company to take control of the Carrington training ground and sell it on a lease-back basis as well as the fact that much of the revenue raised by the club was being used to service debt. Accounts for the Glazers' parent company show that, even allowing for a profit of £80.7m on player transfers, the parent company made a profit of only £6.4m due to the need to service debts.The details of the bond issue have angered fans' groups who say it proves the extent to which the Glazers have taken money out of a profitable club simply to pay for their purchase. Six family members have taken £10m in loans at preferential rates and the bond issue makes provision for £9m a year in fees and management costs.Some fund managers had said a double-digit return would have been more in keeping with the risk profile but it is believed the club's strong brand, a buoyant market for new issues and the fact that some of the hedge funds involved had already invested in the club's debt helped the Glazers and Manchester United executives get the scheme away.Manchester UnitedBusinessOwen Gibsonguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
United's Ferdinand may face 3-game ban Manchester United defender Rio Ferdinand could be banned for three games after the Football Association charged him with violent conduct for apparently elbowing an opponent. cbc.ca |