Club Refinances Construction Debt

mawspurs

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The Club today (Friday 20 September) closed its refinancing of the loans put in place to support the construction of our new stadium.

• The Club has completed a £637m multi tranche, long term financing anchored by a Private Placement and new bank facilities.

Source: Official Site
 

Buggsy61

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That's a good deal, at historically low interest rates. As the average repayment is 23 years, and the longest 30 years it means that the bulk of the debt will be paid back later, when of course inflation will have taken its toll on the capital value of the debt, but there is flexibility to pay it back quicker, and improve the balance sheet.
A quick fag packet means that interest will be around £17m/year, which is manageable (One Vincent Jannsen!)
 

Lilbaz

Just call me Baz
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That's a good deal, at historically low interest rates. As the average repayment is 23 years, and the longest 30 years it means that the bulk of the debt will be paid back later, when of course inflation will have taken its toll on the capital value of the debt, but there is flexibility to pay it back quicker, and improve the balance sheet.
A quick fag packet means that interest will be around £17m/year, which is manageable (One Vincent Jannsen!)
Altogether should be around £40m a year payments.

This will reduce as the debt is paid off and the interest falls.
 

JeremyPaxton

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Altogether should be around £40m a year payments.

This will reduce as the debt is paid off and the interest falls.
No the notes don’t start paying off principal until 2034. So £14m a year on the notes interest until then, that’s it.

The bank loan is likely to be repaid by the naming rights, I’d imagine.

A way of think about this: 10,000 season tickets a year will go to the cost of the new stadium. The rest of the capacity increase (20,000 seats per game) and all the extra revenue coming from other uses of the ground will flow straight to the club’s bottom line. This is a very, very good deal for the Club.
 
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