Thanks, will give it a read later. I'm confused as to why they don't see the PIK's as a priority though, surely with the high interest rates it would be in their favour to pay it off as soon as possible, rather than let it keep getting bigger and bigger.
This is the point I was trying to get to.
In terms of the Glazers personal finance, then yes getting them cleared off would naturally benefit them.
However, for United it seems to make no difference whatsoever.
My suspicion is that with things not going well in Tampa, and their other business assets reputedly not going very well, then they are having to rob peter to pay paul to keep everything afloat.
It wouldnt surprise me to see them taking out further loans from United as a short term measure to try shore things up over in the US before attempting to clear off any of the PIKs.
We know for a fact they have sold off quite a few assets in the US, houses, stakes in business. Its not completely out of the question that with little else to sell other than the Buccs and United, they are now scrabbling around trying to keep everything intact.
Should they come out and sell the Buccs as has been suggested they are trying to do, then I think that would be a clear indication that they have way over committed themselves and naturally with United being their largest asset and the one likely to make them the most revenue, they would want to hang onto it as long as possible.
On the face of it United appear to be holding their own for the moment. The Glazers however would appear to be struggling, and should that rumour that they lost over $440 million in a dodgy share deal ever be proven to be true, then it would almost certainly explain why they are spending so little at Tampa, and would go along way to explaining why they havent paid off the pIK debts yet.
That money could well be needed elsewhere in their business empire, and this bond issue at least allows them the flexibility to dip into Uniteds funds to tide them over.
yeah i wikipediad it too 
