Inter soccer team closed the placement of 75 million euro of bonds with identical characteristics to those of the issue placed for 300 million euros in December 2017 (see here a previous article by BeBeez). At the time, in fact, Inter Media and Communication spa, the only director and manager of the media, broadcasting and sponsorship sectors of FC Internazionale Milano, placed senior secured bonds maturing in 2022 with a 4.875% coupon. The new securities, subscribed at a price equal to 93% of the nominal value, will form a single class with the securities issued in 2017 (see the press release here). The bonds are listed on the Luxembourg Stock Exchange.
That 2017 bond served to refinance the debt of 208 million (maturing July 1, 2019) to Goldman Sachs, contracted in 2014 upon the entry of the Indonesian businessman Erik Thohir into the capital of the football team. In addition, the means found on the market were used to repay a credit line in circulation and for general business needs (therefore for the January purchase campaign). The additional 75 million raised now will be used to finance Inter’s general corporate activities.
The debt owed by the club in 2014 to Goldman Sachs, in the initial amount of 230 million euros, was part of the reorganization of the Nerazzurri club which had led Thohir to take over from the Moratti family as majority shareholder of Inter. In 2016, the Chinese electronic retail giant Suning then bought about 70% of Inter for 270 million euros, subsequently undertaking to refinance the debt in question.
In the new 75 million issue, Latham & Watkins assisted FC Inter legally, while Cravath Swaine & Moore and Dla Piper assisted JP Morgan as sole physical bookrunner.