Rags Saved? r.e Bond issue

G G

Goater666

Well-Known Member
Joined
25 Jul 2005
Messages
2,378
I'm breaking my own rule by making a Rag thread, but fuck it.

<a class="postlink" href="http://news.bbc.co.uk/1/hi/business/8475317.stm" onclick="window.open(this.href);return false;">http://news.bbc.co.uk/1/hi/business/8475317.stm</a>

Manchester United raise £504m in bond issue
Old Trafford
Manchester United was bought by the Glazers in 2005

Manchester United have successfully raised £504m through a bond issue, which will cover most of what the club owe to international banks.

The deal means the Premier League club will be able to pay off nearly all their outstanding debts of £509m.

They will face an annual interest bill of £45m a year on the bonds.

The sale comes after figures showed debts at the club's parent firm, Red Football Joint Venture, rose to £716.5m ($1.17bn) in the year to June 2009.

The bond was sold in two tranches, one of £250m with a coupon rate - or interest rate - to bond holders of 8.75%, and another tranche of $425m with a coupon rate of 8.375%.

However, unlike the debt at present secured against the club, the seven-year bonds will not mature until 1 February 2017.

The annual interest bill on the bonds is close to the £41.2m in interest paid in the last financial year.

But by converting the money owed to banks into a bond, it means the club will be free of the potentially strict financial conditions imposed by lenders.

On Thursday, it was confirmed that the club had signed a three-year sponsorship deal with Turkish Airlines to take over as the club's official carrier.
Click to expand...

Anyone know what the fuck it means?
 
Re: Rags Saved?

[youtube]http://www.youtube.com/watch?v=s9Vn5kCasUo[/youtube]
 
It means they are still fucked and still owe the money but they just pay less interest, in another thread it breaks it down and a lot of high flyers have said it could and is likely to go tits up. Meaning that investors wont get a return and unless united keep winning things then they could make a loss....
Dont forget united will use said money to pay the banks but will still owe the investors, it's papering over cracks. It's like having say... £800m in debts and shifting your debt around while you cover your eyes and pretend it's all ok and the problem has gone away, but open your eyes and it's still there building up interest.
Also hear an interesting thing today... Owen gets £50k per wee regardless of him playing but gets a bonus regardless of time played if he step onto the pitch, it's an extra £60k! No wonder they are fooked doing deals like that.
 
not my fault! said:
It means they are still fucked and still owe the money but they just pay less interest, in another thread it breaks it down and a lot of high flyers have said it could and is likely to go tits up. Meaning that investors wont get a return and unless united keep winning things then they could make a loss....
Dont forget united will use said money to pay the banks but will still owe the investors, it's papering over cracks. It's like having say... £800m in debts and shifting your debt around while you cover your eyes and pretend it's all ok and the problem has gone away, but open your eyes and it's still there building up interest.
Also hear an interesting thing today... Owen gets £50k per wee regardless of him playing but gets a bonus regardless of time played if he step onto the pitch, it's an extra £60k! No wonder they are fooked doing deals like that.
Click to expand...

Cheers
 
my understanding is

Bonds are guaranteed income for the purchaser. that is why they are of interest to investors.
rags cant decide to repay part way through as perhaps with a loan so they are committed to paying the interest for the next 7 years and then repaying the capital too. tick tock.

repay £750m in 7 years? better start saving up - £10m per month should do it!

Also, the money from the bonds will be used (we assume) to pay off some of the bank loans (and any penalties for early settlement) making the TWGC apparently more fluid despite the bonds allowing greater financial freedom but will also allow the owners to reallocate assets, most probably to themselves!

there will still be the balance in loans to to be repaid and the interest to be settled, how long will the banks hold out.

so if a rag tells you they are now loaded
LAUGH OUT LOUD

and LAUGH AGAIN

TICK TOCK
 
They've paid for a loan with another loan. The big interest ones are still there.
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
✖
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.