The interest rate on a new loan from PIMCO to Inter Milan owners Suning may not be much higher than 12%.
This according to today’s print edition of Turin-based newspaper Tuttosport, via FCInterNews. The newspaper anticipate that the new three-year loan will not have an interest rate close to 20%.
A key factor for Inter owners Suning in their efforts to refinance their debt to Oaktree Capital has been the interest rates on any potential new loan.
Interest rates have risen significantly since Suning took on the loan from Oaktree in the spring of 2021.
The interest rate for that loan was 12%. That entails that Suning owe not just the €275 million that they brought in initially, but also an additional amount more than €100 million.
Therefore, a loan with an interest rate much higher than that would have big feasibility questions.
And there were rumours that the prospective interest rate could rise as high as 20%. That could make things very difficult for Suning as far as agreeing a new bridge loan to refinance.
Interest Rate On PIMCO Loan To Inter Owners Suning Won’t Be Much Higher Than 12%
According to Tuttosport, however, Suning will not have ballooning interest rates to worry about.
The Inter owners are reportedly on the verge of agreeing a new loan with US-based fund PIMCO. This would be to cover their debt to Suning.
Reports indicate that the loan will be for around €400 million.
Therefore, the question of the interest rate on the loan could be all-important. Certainly a rate like 20% would make things very difficult for Suning.
However, according to Tuttosport, that will not be the case.
Suning and PIMCO are still in talks regarding the precise financial terms of the new loan.
The US fund are still at the due diligence phase.
However, Tuttosport anticipate that the interest rate will not be too far from the 12% from the Oaktree loan.
