Oaktree Capital has reportedly approached Bank of America to open discussions over refinancing Inter Milan’s debt via the bond.
According to Il Sole 24 Ore via FCInter1908, the Nerazzurri owners have already established contact with the American conglomerate bank.
The American hedge fund seized the club from Chinese owners Sunning last summer as collateral.
And now, they’re looking to put Inter’s finances in order.
Indeed, that’s among the crucial parts of Oaktree’s long-term project at San Siro.
However, it’s a sensitive matter, and they want the best in business to handle the process.
Bank of America certainly fits the bill.
Oaktree Capital Contacts Bank of America to Refinance Inter Milan Debt
It wouldn’t be the first time that Bank of America had helped an Italian club refinance their debt.
Indeed, they brokered in the Elliott fund’s sale of AC Milan to RedBird Capital Partners after sorting Rossoneri’s debt.
Furthermore, the bank financed Real Madrid’s reconstruction of the Santiago Bernabeu a few years ago.
Therefore, Oaktree sees the famous investment bank as a potential partner to manage a complex financial restructuring.
Meanwhile, the debt in question amounts to approximately $400 million in high-yield bonds, which are due to mature in the near future.
Oaktree should just sell and handover the club to a buyer who is willing to spend and invest on the club.
They only come up with plans and end up doing nothing in the long run.
How the f**k are we still 400m in debt ?!?
This club is doomed.
Meanwhile Milan Napoli and juve will all spend huge sums in the market ♂️♂️
a reddit post mentioned that inter was in debt over 600m as retained loss.
this is separate from the loan that steve zhang took.
source: https://www.inter.it – Management Report on Operations July 1, 2022 – June 30, 2023
The debt per se is not an issue, as it is a fraction of the club’s value. The issue is that the annual interest payment is around 30 mln, which could be spent in the mercato instead.
Looks like Zhang situation comes back again~~ lol, where are the fans saying oh oaktree will save us from Zhang?
why do you call them fans? They are delusional fans who are willing to attack others who are very critical of inter. These “fans” also believe they will be top four next season LOL no wonder Oaktree are having fun deceiving these “fans:”
Inter made 430 million profit and the “debt” is 400 million so inter has enough to pay at least half of the debt.
The 430 mln is revenue, not profit. Remove the expenses to operate the club, including the mercato, and the profit is either small or nothing at all.
Oaktree has trillions of dollars in assets under management. Rest assured they don’t have financial problems with Inter.
Yes, oaktree has money, but that doesnt mean they are willing to spend on Inter. The refinance proves that Oaktree has no interest to taking risks from Inter, they just dont care. If Inter can make money for them, that is great, if not, they’d rather get rid of it. That’s it.
Yes, it is obvious that Oaktree will not spend its money to strengthen Inter. But Oaktree, unlike Zhang mentioned by you above, doesn’t struggle with debts.
Yes, I never said they are struggle with debts, they refinance just dont want to take any risk. All I said is all the refinance situation comes back again, which means if in next two to three years, Inter doesnt do well on money earning, Inter might face another take over.
Oaktree would never allow a takeover. They can easily pay the debts if need be, and then they can sell Inter for more than the debts’ value, i.e. make a profit from the sale.
CLUB Value: $1.15 billion
Inter Milan
One-Year Change: 15% | League: Italian Serie A | Owner: Oaktree Capital Management | Revenue: $430 million