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Inter Milan launch €415m bond offering

New issue combines previous bonds and extends maturation to 2027.

25 January 2022 Rory Jones

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  • Club looking to refinance revolving credit facility
  • Bond rated at B+ by Fitch

Italian champions Inter Milan have launched a €415 million (US$467.8 million) bond issue in order to help pay off their debts.

Inter said that the institutional offering will help refinance the club’s revolving credit facility, fund secured accounts and pay ‘related fees and expenses’.

The move sees the Serie A club replace the two previously existing bonds – worth a combined €375 million (US$422 million) – with a single offering, plus a €50 million (US$56.3 million) line of credit. The latest issue sees Inter move the original period of maturation from the end of December 2022 to December 2027.

The bond has been rated at B+ grade by Fitch, while the interest rate on the debt has increased from 4.85 per cent to a flat six per cent.

Announcing the new bond issue, Inter highlighted their popularity with fans and their large annual allocation of central Serie A revenue. On the commercial side, Inter say that they expect to receive a combined €119 million (US$134.15 million) until 2025 from their current primary sponsorship deals with blockchain platform Socios.com, technology company Lenovo and non-fungible token (NFT) developer Zytara.

An official club statement on 24th January read: ‘We benefit from strong historical financial performance and future growth prospects from our media and sponsorship activities and, despite the impact of the Covid-19 pandemic and the unprecedented disruption to the business and industry caused thereby, our adjusted revenue remained relatively stable.’

Inter have suffered financially since the start of the pandemic with the club’s owner Suning in turmoil in its native China. While there have been several reports of a pending sale over the last couple of years, no deal has yet been forthcoming. Instead, Inter have been forced to significantly increase their debts, most saliently in the form of a large loan from US fund Oaktree Capital.

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