Good News For United Fans *Glazers to pay off PIK loan* - HotUKDeals
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Good News For United Fans *Glazers to pay off PIK loan*

shauneco Avatar
6y, 3w agoPosted 6 years, 3 weeks ago
Glazers to pay off PIK loan
£220million loan expected to be paid with owners' own money

Manchester United owners the Glazer family are reportedly ready to pay off £220million of debt.

According to a voluntary free-payment notice, the Glazers' holding company Red Football Joint Venture will settle the high-interest payment-in-kind (PIK) loan next week.

Sky Sports News understands that the Glazers will use their own money, and not the club's, to settle the debt, which carries an annual interest rate of more than 16%.

Joel Glazer, the co-chairman of Red Football, has signed the document which has been sent to the holders of the loan, who are mainly hedge funds.

The document says Red Football will "pre-pay 100% of the outstanding loan on November 22".

United's debt is estimated at more than £700m so this repayment would mean the debt is solely the bond agreed earlier this year worth more than £500m.

A spokesman for the Glazers has declined to comment.
Comfortable

The move may help to reassure United fans who have been concerned about the debt burden on the club after chief executive David Gill last month insisted supporters should not be unduly worried by the figures.

Gill said: "I can't speak for any other club, but the United fans should not be concerned.

"We have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs - total wages are 46% of turnover - and we can afford the interest on our long-term finance.

"In our opinion if something changed in the ownership this club will survive and continue - it is covering the financing cost more than adequately.

"We still have cash to invest in players and to give good contracts to players and we are comfortable with the business model."
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shauneco Avatar
6y, 3w agoPosted 6 years, 3 weeks ago
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#1
Source: Skysports
#2
You obviously didn't read that that the same way as I did, just says robbed Peter to pay Paul to me. Doesn't seem like they have paid anything off really, just took a loan out to pay off the original one because the interest rate maybe lower.

It is not yet clear how the Glazer family were able to raise the money to pay off the PIK (payment in kind) loans but significantly it is not with funds from the club.

The Glazers are most likely to have borrowed money from other financial institutions at more affordable rates to refinance the PIKs.

A spokesman for the Glazer family declined to comment.


Edited By: greg_68 on Nov 16, 2010 14:26
#3
greg_68
You obviously didn't read that that the same way as I did, just says robbed Peter to pay Paul to me. Doesn't seem like they have paid anything off really, just took a loan out to pay off the original one because the interest rate maybe lower.

It is not yet clear how the Glazer family were able to raise the money to pay off the PIK (payment in kind) loans but significantly it is not with funds from the club.

The Glazers are most likely to have borrowed money from other financial institutions at more affordable rates to refinance the PIKs.

A spokesman for the Glazer family declined to comment.


Quite probable but at least the interest will be lower, However like you say where will the money come from?

I'm sure they've probably got a couple hundred of million lying around somewhere, Frees up some money for the short-term.
banned#4
Hardly good news. Seriously come on - they've got no money. Where do you think the £220 million has come from?

VB1 - Man Utd fan.

Seriously, wake up.
#5
As an avid utd fan for many years unfortunately i dont see an speedy end to the glazers control of utd, they will screw every pound out of it, the utd franchise historically is very lucrative, they've got their greedy paws in it for the long run, alas i think it will be utd's ruin unless some rich sheikh comes along.
#6
I'd love to know the real financial situation the club and they are in.
#7
best news about it is that glazers could be setting up to sell the club
banned#8
irshybar
As an avid utd fan for many years unfortunately i dont see an speedy end to the glazers control of utd, they will screw every pound out of it, the utd franchise historically is very lucrative, they've got their greedy paws in it for the long run, alas i think it will be utd's ruin unless some rich sheikh comes along.

Doesn't everyone involved with the club screw every penny they can out of it?
#9
"As part of a £526m bond refinancing in January, the Glazers were given the freedom to take up to £70m from the club's revenues to pay down the PIKs.
But it seems they have not taken this option.

By notifying the lenders they intend to pay the loans off in full next Monday, the Glazers will reduce the financial pressure on the club. "

At least it's not £70m out the transfer kitty.
#10
I am not convinced the Glazers are all the bad news they are made out to be. I can't decide whether they are running the club prudently and in the long term will make it even more profitbale or whether they are creaming off the profits to leave the club just about surviving.

Edited By: greg_68 on Nov 16, 2010 14:40
#11
United haven't done too badly since the Glazers took over. Even after this season's "terrible" start, they are unbeaten and three points off the op of the Premier League!

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