Inter Milan on Course to Early Bond Repayment, Plans to Establish New Debt Agreement
Italian soccer titan, Inter Milan, is gearing up to kiss goodbye to a hefty sum of 415 million euros in high-yield bonds this month! As the club prepares to secure funds from a fresh debt deal, it's revving up its engine to cement a financially prosperous future.
Back in 2022, Inter Milan fired off a five-year bond, sporting a 6.75% interest rate, to refinance its arduous debt burden. The bond issuance was orchestrated by Inter Milan's media company, managing the club’s broadcast and sponsorship business.
Set to redeem that bond on June 26, the company is crossing its fingers and knocking on wood to seal a debt financing transaction before the big day! Should everything go as planned, the fan-favorite soccer outfit will officially be debt-free—early, no less!
Plucking up the funds early typically means seizing a chance to nab better financial conditions. So, it's no surprise that Inter Milan's US-based investment overlords, Oaktree, are all but hopping on the helm to guide the club through this new refinancing chapter.
Rumor has it that Oaktree's been hobnobbing with private debt investors to negotiate terms for this fancy new financing package. You know, the usual bank roll-overs when you're a multi-billion euro global powerhouse!
Oaktree wrested control of Inter Milan from the Chinese conglomerate Suning in 2024, following Suning's outright default on a hefty 395 million euro loan. Upon taking over, Oaktree found itself knee-deep in a massive 900 million euro debt pile.
Fast forward to the present day, and Oaktree has been navigating the club's dicey financial waters through strategic debt-for-equity swaps and some executive restructuring. Furthermore, the investment firm's chumming it up with big ol' Bank of America to iron out the specifics of Inter Milan's upcoming debt overhaul.
Although the specifics for June 2023 aren't currently in the public domain, Inter Milan's 2025 financial recovery blueprint calls for a swift debt repayment and an invitation to some top-tier finance partners for refresh drinks around the negotiation table. As they say, the ball is in play, and Inter Milan's financial future looks brighter than ever!
Inter Milan's debt-free status, expected on June 26, will be a significant milestone in its financial makeover, marking an early accomplishment from the club's refinancing strategies. With the help of Oaktree, Inter Milan is actively negotiating with private debt investors for a new financing package, aiming to secure better financial conditions in the process.
