Rags Saved? r.e Bond issue

[law74]

Ok, so you have maxed out your credit card to the extent you cannot now afford to meet even the minimum monthly payments. So you take out another credit card at a lower rate of interest, but, due to your poor credit rating the limit on the new card aint enough to cover the origonal debt.
But, the lower limit on the new crd means that you can now cover the minimum monthly payments on both cards although you still cannot start reducing the debt.
This gives you a few months, maybe even a couple of years to hope for a monster inflation busting pay rise, or your dear old great aunt jane (who you have never seen) dies and leaves you all her dosh.

 

[Ducado]

A company can default on it's bonds if it becomes insolvent, sometimes a company has to up the yield of the bond to cover for the risk

Bonds are traded like shares, the value of the bond (although it can be complex) goes up if it is thought the company will be able to repay.

 

[The Pink Panther]

To be honest mate, I don't understand it either.
They're 700M in debt, have raised 500M in bonds and they'll be paying 45M a year in interest on these bonds. That I understand (I think).
But by my maths there's still another 200M outstanding.

Where's Prestwich when you need him?

 

[azatheblue]

couldnt care less

 

[Ducado]

All they have done is moved some of the debt, in order to get the cost down, the debt is still there and it will still effect their ability to raise funds for the transfer market, they are on a very long (downward path) towards ruin, it pretty well trodden, but people should not be impatient, their fall will be slow, one season they will be out of the top 4, next it will be mid table followed by a couple more mid table season (all the time the fan base decreasing and the revenue) then they will avoid relegation, and then relegated and once the trap door opens they will fall as fast as Leeds

There are quite a few sensible United fans that realise this (even some on Red Cafe) many are blinkered as to what is going on, which is hardly surprising as most would not know where Trafford was.

 

[Kinkys Left Foot]

As I understand it - its like this currently approx:

550mill+ to banks at 5.05%
205 mill PIK at 14.25%

The purpose of paying off the bank loans is that they cant repay the PIK loans until the bank loans gone - bit like credit cards charging the higher rates of interest on the outstanding debts first.

So now theyve got:

50-100mill still to banks at 5.05%
205mill PIK at 14.25%
500mill at 8%

Im no financial whizz kid but it doesnt affect things that much as far as debt servicing but if they can eliminate the rest of the bank loan they can begin to pay off the PIK loans - they still need to make huge operating profits to make dents in any of it!

 

[bluesteph]

According to some football finance bloke on SSN, they even more fucked in long term just a little safer in short term!!!

I saw that & he also mentioned that they have already borrowed £35.9mill of their new £80mill sponsorship deal with AON.

Tick tock....

 

[whalley ranger]

Now, if some of the Bond buyers are friends of our owners ....
Could it influence things?

 

[scowy68]

Hate to say it,but some big consortium of business men is bound to buy the fuckers out sooner or later.

 

[mike channon´s windmill]

Once again the rag loaded media are reporting it as salvation citing the fact it was oversubscribed - at that rate over 7 years I´m hardly fookin surprised - once a serious journo has pored over it they´ll be left with egg on their expense lunch fed fat hack faces when they realise the timescale and obligations they´re tied to in respect of repayments