16-01-2010, 04:17 PM
Manchester United's bond issue is already attracting major buyers.
United chief executive David Gill will today pitch the club's £500 million bond issue to potential investors in London amid growing confidence in the Glazer camp that the refinancing initiative – which may include the sale of the club's Carrington training ground - will be successful.
While some analysts have expressed scepticism about the attractiveness of the bond in a crowded market, The Daily Telegraph reports that significant orders in excess of £50 million have already been placed. There is an expectation within the Glazer team that orders will eventually run into billions.
If that is the case it will strengthen the Glazers' hand when they come to price the bond at the end of next week. The bond issue will remain at £500 million, but larger investors may have to settle for a smaller allocation.
"This is a well-run company whose owners have demonstrated it can get bigger and more successful," said one banker with knowledge of the sports market. "People will be attracted by the emotional link to United as well, but this is not a flaky investment. There is more risk in football than many other industries, but United are better protected than any other club."
source: TibalFootball
United chief executive David Gill will today pitch the club's £500 million bond issue to potential investors in London amid growing confidence in the Glazer camp that the refinancing initiative – which may include the sale of the club's Carrington training ground - will be successful.
While some analysts have expressed scepticism about the attractiveness of the bond in a crowded market, The Daily Telegraph reports that significant orders in excess of £50 million have already been placed. There is an expectation within the Glazer team that orders will eventually run into billions.
If that is the case it will strengthen the Glazers' hand when they come to price the bond at the end of next week. The bond issue will remain at £500 million, but larger investors may have to settle for a smaller allocation.
"This is a well-run company whose owners have demonstrated it can get bigger and more successful," said one banker with knowledge of the sports market. "People will be attracted by the emotional link to United as well, but this is not a flaky investment. There is more risk in football than many other industries, but United are better protected than any other club."
source: TibalFootball
