Inter Milan is issuing $468.3 million in new debt to pay off old debt.
The Serie A club is juggling its finances as it continues to be weighed down by pandemic-related losses. The senior secured notes, issued by its broadcast, media, and sponsorship division Inter Media and Communication, will be due in 2027.
- The team said that the new cash would be used to pay off secured notes due this year and repay its revolving credit line.
- The previous bonds were worth $423.2 million, along with a $56.4 million credit facility.
- The team hired Goldman Sachs to work on refinancing its debt, reportedly mandating the bank launch a new bond of roughly the same size as its previous one. The new bonds were graded B+ by ratings agency Fitch.
Winning On Field, Losing Off
Inter Milan said it earned $80.4 million in the third quarter of 2021, down 40.4% from $134.9 million the previous year. The club’s $277.2 million loss in their championship-winning 2020-2021 season was the highest ever by an Italian soccer team.
In December, Inter Milan and AC Milan announced a new stadium project slated to cost $733 million.
However, the team may soon access a new source of funds: The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, is reportedly closing in on a $1 billion purchase of the team.
