Inter’s proposed bond offering to raise €300m reportedly left some investors “scratching their heads” – but is expected to go through this week.
The issuing of secured bonds worth €300m, maturing in 2002, was announced by Inter earlier in the week, and Bloomberg reports investor meetings will run until Thursday.
Inter’s proposed bond offering to raise €300m reportedly left some investors “scratching their heads” – but is expected to go through this week.
The issuing of secured bonds worth €300m, maturing in 2002, was announced by Inter earlier in the week, and Bloomberg reports investor meetings will run until Thursday.
However, the financial publication warns three of the four potential investors it spoke to expressed doubts that the yield of five percent would be worth their while.
The trio are said to have cited “the need to get to grips with the deal’s structure”, which have not been made public but could include “elements more akin to a project financing reliant on specific cash flow streams for repayment.”
Bloomberg adds the three investors also noted “risks associated with the Italian football industry”, namely the threats of relegation and poor performance.
Nonetheless, it expects the Nerazzurri to be given a credit rating of BB-, which indicates the club have demonstrated an ability to meet their payment obligations, and that they will close the transaction “in the coming days”.
The money would be primarily used to repay a €230m loan to Goldman Sachs, taken out by previous owner Erick Thohir in 2014 and which is also the bookrunner of the bond issue.
The Beneamata are currently top of Serie A with 40 points after 16 games and no defeats.