Did you pay any attention to the covenants in the bond issue prospectus? As of today they can't take any more than £95m from the club. Carrington can be transferred too, possibly to be used as security for new borrowing.
ALL issues relating to the bond issue and club finances
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Did you pay any attention to the covenants in the bond issue prospectus? As of today they can't take any more than £95m from the club. Carrington can be transferred too, possibly to be used as security for new borrowing.
According to Bloomberg: "The Glazers aren’t going to take any money out of the club to pay down the debt."
I think that's a leap to be honest. We'll have to wait and see, however won't we only know for certain with our 2nd quarter results?
No, we'll know tomorrow morning. The club would have to inform the bond holders if the dividends were being taken.
Manchester United to Pay Off $353 Million of Soccer Team's Corporate Debt - Bloomberg
What the feck, where's the money coming from if not from United? Some sort of refinancing?
More debts?
In what capacity did you get that, btw?
In your opinion what would the most likely source of funds be? I'm thinking the £95million from the club. You say Carrington could be secured against borrowing though, what kind of value does the site have? is it particularly likely to be used as collateral?
Is it possible they sold equity? I don't know 25% of United or something to some new group/individual?
Or is it more likely...more loans?
Or is it more likely...more loans?
At a guess I would say Carrington would be valued at somewhere in the region of £30m-£40m.
The Bloomberg article is pretty conclusive. No money is going from the club to pay down the PIK debt. You'd have to say the most likely source of funding is new borrowing but who knows...
It's a possibility but very unlikely in my opinion. New loans is more likely.
Ok, correct me if I'm wrong but as it stands aren't there 2 ways in which the Glazers can make money from the club:
1. We meet EBITDA targets (revenue grows - costs controlled) and they can take their dividend.
2. The value of the club increases to the point they decide to sell up.
And don't both of these seem to rely on maintaining the success of the club? Surely emptying the club of funds entirely would be very short termist?
Even better news.
andersred, without having time t have read this and in the interests of fairness. What are your views on this for the club?
I understand you'll need to read up on the details but gut feeling would do!
I understand you'll need to read up on the details but gut feeling would do!
Yeah, it's not gonna happen; not least because it's impossible.
This is incredible news btw, I cannot wait to find out what's going on. Another blindsiding masterstroke by the owners no doubt.
I think you'll owe him more than a pint, anders. A very big slice of humble pie would not go amiss.
Spoken like someone who doesn't think we all want what's best for the club.
I think cautious optimism is the best approach to this until we get the full story of where it's funded from. At the highest level, great news, but let's see the full details first.
Evening Anders
West Ham is a possibility.
The one thing that's putting me off the idea that it's new borrowing is that I think we'd have heard something before now. Still much more likely than an equity sale I reckon. That would be a massive surprise.
Evening Anders
West Ham is a possibility.
The one thing that's putting me off the idea that it's new borrowing is that I think we'd have heard something before now. Still much more likely than an equity sale I reckon. That would be a massive surprise.
Further borrowing couldn't be secured against the club or its assets could it? Carrington is separate from the terms of the bond prospectus possibly (I seem to remember it being mentioned that they had the option to sell it and rent it back or something
Where is the cash coming from to pay-off the PIK debt? I'd assume it is the result of another bank loan(otherwise they would have payed it off earlier if they had the finances to clear the interest rate)which would appear a case of using a bucket(a borrowed one of course) to rid the sinking ship of water.
Huh?
But I highly doubt the interest on a new loan would be anywhere near as large as those on the PIK.
So in that sense the bucket is replacing a tea spoon.
Well I think it's safe to say that my chin just hit the floor.
A loan at better rates than the PIK would seem much more likely to me than an equity sale.
What would be the point in buying a share of United when the Glazers have given every indication that they will never sell the club? You'd never get a major return on your investment.
What would be the point in buying a share of United when the Glazers have given every indication that they will never sell the club? You'd never get a major return on your investment.
Well it's a win win situation. Even if more money has been borrowed the interests will be much lesser than those on pik's! And if we've sold a stake that's great. Good to see it's confirmed that their not touching any of the club money. Tomorrow should be interesting.
Evening Anders
West Ham is a possibility.
The one thing that's putting me off the idea that it's new borrowing is that I think we'd have heard something before now. Still much more likely than an equity sale I reckon. That would be a massive surprise.
I know it's unlikely but I'm hoping that is what it is...some Asian/Arab businessman looking for a bit of celebrity?
You've misread my post. I agree that an equity sale is much less likely than new borrowing.
Oops, sorry!
you've read his comment the wrong way round. He's agreeing with you that a loan would seem more likely.
*already corrected - sorry
Yeah, got it!
I won't believe it until it's official and the figures are released. We all know how economical with the truth the owners and their puppet(Gill) can be when it suits.
Uncle Malc' emailed me with it himself
You can't actually give a straight answer to anything can you?
That's what he said. Read again. Edit; I see you've already done this; damn your stupid last post of the page errors!
It could, yes, but it would be second lien to the bonds and as such the interest rates wouldn't be too clever (an improvement on the PIKs though). The downside of course is that the club would be responsible for servicing the additional borrowing.
You're a touchy lot! All ganging up on a little old me.
Why should he? All you ever do is mock him and take the piss, why should he then answer all your questions on demand?
Not to ridiculous questions, no.
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