MILAN (Reuters) – Italy’s Inter Milan aim to renew a bond of 375 million euros ($ 459 million) by the end of the year, a source familiar with the matter said, after the champions of Serie A have secured new funding through an agreement with investment firm Oaktree Capital Grouper.
Inter, controlled by Chinese retail giant Suning, has been hit hard by the fallout from the COVID-19 pandemic as matches are played in nearly empty stadiums and companies cut budgets for sponsorship.
The restrictions on football club spending imposed by the Chinese authorities further complicated matters.
To shore up the club’s finances, Suning secured a € 275million funding deal with Oaktree last month, pledging Inter shares as collateral for the package.
The ‘Nerazzurri’, who are cutting their payrolls to keep the business sustainable during the pandemic, said they would also start the process of refinancing the € 375million bond sold by the club’s media unit which expires on December 31, 2022. The club have not given any specific details on the schedule other than the fact that they will kick off the process in the coming months.
“Inter aims to put in place a refinancing deal one year before the bond’s maturity, possibly by the end of October,” said the source, who declined to be named as the talks were not forthcoming. not public.
Inter’s media unit, which manages the club’s media rights, sold a € 300m high yield bond in 2017, partially backed by club media revenues.
The unit sold an additional 75 million euros of this bond, which bears a 4.875% coupon, last year.
(Reporting by Elvira Pollina and Elisa Anzolin in Milan; Editing by Matthew Lewis)