22-01-2010, 10:08 PM
United raise cash through bonds
Deal could allow club's owners more flexibility
Manchester United have successfully raised £504million through a controversial bond issue that has caused some opposition from fans.
The money will enable United to pay off most of the club's current £509m debt and could help the Glazer family tackle the £202m payment in loans which continues to grow.
Red Devils officials, including chief executive David Gill, have been on a world tour to drum up interest in the bonds, which will run until February 2017.
Doubt was cast over the prospects of being able to sell them, but they have been over-subscribed.
However, the interest payment on the bonds will be £45m compared to the current £41million on the bank loans.
A spokesman for the Glazer family claimed the deal will bring a 'transparency' to United's finances for the next seven years.
The deal is expected to give the club's owners more flexibility in the running of the Old Trafford outfit, and could bring them leeway to make some new signings.
source: skysports.com
Deal could allow club's owners more flexibility
Manchester United have successfully raised £504million through a controversial bond issue that has caused some opposition from fans.
The money will enable United to pay off most of the club's current £509m debt and could help the Glazer family tackle the £202m payment in loans which continues to grow.
Red Devils officials, including chief executive David Gill, have been on a world tour to drum up interest in the bonds, which will run until February 2017.
Doubt was cast over the prospects of being able to sell them, but they have been over-subscribed.
However, the interest payment on the bonds will be £45m compared to the current £41million on the bank loans.
A spokesman for the Glazer family claimed the deal will bring a 'transparency' to United's finances for the next seven years.
The deal is expected to give the club's owners more flexibility in the running of the Old Trafford outfit, and could bring them leeway to make some new signings.
source: skysports.com