Inter Milan will refinance their bond of over €400 million by issuing a new bond.
Italian outlet Calcio e Finanza detail how the new bond will be worth €350 million, with an interest rate of 4.52%.
Inter had most recently refinance the bond in 2022, under previous owners Suning.
That bond had been for €400 million. With the total interest, the club owed their bondholders €412 million.
But the club will be repaying the full amount. This comes almost two years before the bond matures in February of 2027.
Inter Milan Will Refinance Bond By Issuing New Bond
The big question has been how Inter Milan will repay their bond in full.
And Calcio e Finanza reveal that the club will do so by issuing a new bond.
This will be for €350 million. Moreover, notably, the interest rate on the new bond will be €4.52 million – down from the rate of €6.75 million on the previous bond.
There remains the question of where the over €50 million extra will come from.
According to Calcio e Finanza, there would be a couple of possibilities here.
One would be for Inter owners Oaktree Capital to make a cash injection to directly pay off the remaining amount that the club owe to their bondholders.
Furthermore, another possibility would be for the Nerazzurri to use revenues from the club’s own coffers to pay off the amount. That would come after what has been a very high-earning season for the club.
Paying high interest debt and closing it with another debt but with lower interest rate. Basically Oaktree wont inject cash with unsustainable balance sheet, because running Inter for 1 year can reach top 300 m and with income cant reach higher than 300m from just tv rights, tickets, sponsor and merchandise ; it is too hard for maintaining daily needs a club.
Sempreinter , is this al the debt Inter has or is there more than this?