Glazers, Bond Issue and Debt

[DaleDaManc]

Its mad all the debt in football today just crazy money

[andrewcmufc]

but they need crazy money to compete nowadays

[DaleDaManc]

true but when all us hear in ireland are all in resession they make me drool haha

[andrewcmufc]

same as mate

[Noucamp99]

There is a major recession on the mainland, too, lads. OK, so we haven't seen it anywhere near as bad as you guys in Ireland, but there has been a marked effect on football attendances, already. Look at the numbers at OT. No full houses this year; no new record attendances; tickets on general sale.
In addition, job cuts at OT and Carrington. Cutbacks in other ways, too. Ticket prices not held at United to help the fans. No 'Kids for a Quid' here. The Glazers are in it for the money ONLY! They have no clue about football. I'm surprised they weren't labelled asset strippers, tbh!

[RambleOnRed]

Just saw this on the club's official website, might warrant its own thread when more information is available.
(Source: Manutd.com)

Senior secured notes offering

Manchester United will be seeking to raise approximately £500 million aggregate principal amount from an offering of senior secured notes due 2017.

The notes, whose proceeds will be used to refinance existing debt secured against the Club, will be issued by MU Finance plc.

None of the notes or the guarantees to be issued in the offering have been or will be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This announcement does not constitute an offer to sell or a solicitation to buy in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction and is not intended to provide the basis for any credit or other evaluation of any securities or offering referred to herein.

[Noucamp99]

Any idea what that means in English, lol?

[Noucamp99]

Manchester United has launched a £500 million ($801.4 million), seven-year high-yield bond that will be used to refinance existing debt, banks working on the deal said Monday.

J. P. Morgan Chase Co., Bank of America Merrill Lynch, Deutsche Bank AG, Goldman Sachs Group Inc., Royal Bank of Scotland Group PLC and KKR Financial are joint-lead managers on the deal.

The senior, secured bond will be issued by the club's subsidiary, MU Finance PLC. The deal is expected to be priced towards the end of next week. Roadshows will be held in Asia Monday and Tuesday, in Europe from Jan. 13 until Jan. 18, and in the U.S. for a week from Jan. 19.

Manchester United has a £700 million debt load, which was incurred in 2005 when U.S. entrepreneur Malcolm Glazer and his family bought the club in a £790 million leveraged buyout. Financial results released by the club Monday showed Manchester United still owes £509.5 million in secured bank loans.

People familiar with the matter have previously told Dow Jones Newswires that the bond issue will pay off senior bank debt first and, depending on the size of the issue, also repay some of the club's £135 million payment-in-kind debt, which carries an interest rate of 14.25%. Payment-in-kind debt is where interest is paid via the issuance of new debt, rather than in cash.

Source: Wall Street Journal.

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Manchester United has said it plans to raise £500m through a bond issue in order to refinance its debts.
The announcement came as the club announced pre-tax profits of £48.2m for the year to 30 June 2009, compared with a loss of £21.4m a year ago.
The profit includes the £80m fee the club received from Real Madrid for Cristiano Ronaldo last summer.
US businessman Malcolm Glazer bought the club for £790m in 2005, borrowing heavily to do so.
Group turnover rose to £278.5m from £256.2m the previous year, the club's holding company Red Football Ltd said.
There has been much speculation in recent weeks that United was considering a bond issue to address its debts.
Although no total debt figure was disclosed in the results announcement, it has previously been reported as £699m.
The Old Trafford club paid £41.9m in interest on a £509.5m loan.
Without the sale of Ronaldo, United would have reported a loss of £31.8m, despite winning the English Premier League for the third year in a row, as well as the Carling Cup and the Club World Cup last season.
The team also finished runners up in the Uefa Champions League.
Last week, United's big-spending neighbours Manchester City reported an annual loss of £92.6m after splashing out on top-class players since new owner Sheikh Mansour bought the club in September 2008.
Current Premier League leaders Chelsea made a loss of £44.4m last year but said it was now "virtually debt-free".

Source: bbc.co.uk

[Noucamp99]

Red Football Operating Report, year to June 2009:

Group turnover for the year was £278.5 million (2008: £256.2 million). Operating profit before depreciation and amortisation of intangible fixed assets for the year was £91.3 million (2008: £80.4 million). Profit before tax for the year was £48.2 million (2008: Loss of £21.4 million).

The Manchester United team maintained a very high level of performance on the pitch, winning the Premier League for the third consecutive season, winning the Carling Cup, and finishing runners up in the Champions League. In addition to this, the team were crowned World Club Champions.

During the year Old Trafford staged 34 major events, including 19 Premier League home games, 6 UEFA Champions League, 5 domestic cup, 1 friendly and the Ole Gunnar Solskjaer testimonial), the Engage Super League Grand Final and an international rugby union fixture between Argentina and England.

Manchester United secured a new shirt sponsorship deal during the year with Aon who will become the new principal shirt sponsor and will succeed AIG from the commencement of the 2010/11 season. Manchester United also welcomes a number of significant new commercial partners, including 3 Indonesia, Bharti Airtel and Hublot as our official time keeping partner. In addition, United welcome back Audi as their car partner.

Source: manutd.com

Full report here (in PDF): http://dps.twiihosting.net/manutd/doc/co...10_602.pdf

[DaleDaManc]

looks like we are getting in some bit of money ehh