Suning have a clear plan to try and agree an extension of their loan from Oaktree Capital and remain at the helm of Inter Milan.
Today’s print edition of Rome-based newspaper Corriere dello Sport, via FCInterNews, anticipate that the Nerazzurri owners will aim to extend that deadline with an interest payment of around €100 million.
Widespread reports have suggested in recent weeks that Suning are getting close to agreeing an extension of their loan from US-based fund Oaktree Capital.
If that were to happen, it would be a very significant development. An extension would entail the Nerazzurri owners staying in control of the club.
The terms of the loan would see Inter pass into the hands of Oaktree if Suning default. And the current deadline is in May.
But the Inter owners have been negotiating an extension with Oaktree. And they believe that their plan can result in an agreement.
Suning Plan To Extend Oaktree Loan & Stay At Inter Revealed
Suning took on the loan in May of 2021. They brought in €275 million from Oaktree, in order to cover operating costs at Inter.
The interest on that loan was 12%.
Therefore, the total amount that Suning now owe to Oaktree has risen to around €380 million in total.
The Inter owners are proposing to pay the full interest they owe to the US-based fund.
That would be just over €100 million.
And then, the deadline would be extended until either 2026 or 2027.
The interest rate on the loan would then rise, to reflect the wider increase in increase rates. It would likely be around 16%.
According to the Gazzetta, Oaktree are yet to be fully convinced.
The US-based fund have some doubts about Suning’s plans.
But at the moment, there is certainly no other possibility that would be more compelling to Oaktree. There is not a suitable buyer who would present a superior offer to the fund to buy Inter.
Therefore, Suning are confident that their plan will result in an agreement soon.
