Tottenham Hotspur FC has raised a further £250m of US private placements, to pay off Bank of England loans signed during the coronavirus pandemic.
The Club has completed on an institutional fund raising of £250m, with an average tenure of over 20 years and an average interest rate of circa 2.8%. The debt stack includes a new 30-year tranche, with a bullet repayment in 2051 and is a unique financing for any sports entity with the long-term institutional debt markets.
The funds have been used to repay the £175m CCFF funding from the Bank of England, which was used to address some of the shortfall in income caused by the pandemic
and will also partially repay a bank loan held by the Bank of America which had a shorter term, moving it to fixed rate 15-year money, locking in low interest rates and extending the tenure of the debt.
The Club has completed on an institutional fund raising of £250m, with an average tenure of over 20 years and an average interest rate of circa 2.8%. The debt stack includes a new 30-year tranche, with a bullet repayment in 2051 and is a unique financing for any sports entity with the long-term...
www.tottenhamhotspur.com
Tottenham's gross debt totals £831 million (€946 million), with £140 million (€159 million) owed in transfer debt, £96 million (€109 million) in tax debt, £9 million (€10.2 million) in trade creditors and £102 million (€116 million) in other creditors. All equals a total of £1.177 billion.
The club announced losses of £63.9 million (€72.9 million) for the year ending June 30, 2020. Last year Spurs was beneficent of a Bank of England program(see above) from which they drew a low-interest, short-term £175 million (€199 million) loan.
stadiumdb.com
So Levy/Spurs took out a £250mill loan to pay back a £175mill loan. What was the other £75mill for, minus the interest payments?