OWNERS BANK ON INVESTORS COMING IN
MANCHESTER UNITED chief executive David Gill this week began pitching the club’s £500 million bond issue to potential investors in London amid growing confidence in the Glazer camp that the refinancing initiative – which may include the sale of the club’s Carrington training ground – will be successful.
Gill will meet major institutional investors and bankers in a series of presentations intended to secure the bulk of the investment. United have already made presentations in Edinburgh, Hong Kong and Singapore and will pitch to American investors next week, and initial soundings have been positive.
While some analysts have expressed scepticism about the attractiveness of the bond in a crowded market, The Daily Telegraph understands that significant orders in excess of £50m have already been placed. There is an expectation within the Glazer team that orders will eventually run into billions.
If so, it will strengthen the Glazers’ hand when they come to price the bond at the end of next week.
The bond issue will remain at £500m, but larger investors may have to settle for a smaller allocation.
Investors have been told that the coupon (annual interest) on the bond is likely to be around 8.5 percent, but were the issue to be significantly oversubscribed there may be scope for the price to come down.
The size of the order book may also prevent the Glazers having to sell the bonds at a discount.
United’s profitability and success makes it the most attractive football investment, with pre-tax earnings of £91m last year interpreted as a comfortable cushion against the club’s debt, which attracts interest in excess of £40m a year. – The Telegraph