Suning have officially completed a financing operation for a €275m loan from Oaktree Capital for Inter, with three years to pay it back.
The news had been in the works, with Bloomberg reporting yesterday that a deal was on the verge of completion.
However, while Bloomberg pointed to Oaktree purchasing 30 per cent of the club shares, that does not seem to be the case.
Instead, it’s a loan for €275m with Suning’s 68.55 per cent shares in the club as collateral should they not keep up the repayments.
Inter released a statement via news agency ANSA this evening.
“Following the process of due diligence with a common long-term vision for the project, today a financing operation based on shares with funds run by Oaktree Capital Management L.P. was finalised.
“With this financing, the shareholders will continue to sustain FC Internazionale Milano, with the objective of overcoming the difficulties and opportunities lost during the COVID period.”
According to Calcio e Finanza, Suning’s holding company for Inter – Great Horizon – will receive €275m.
Of that, €33m will go to liquidate the quota currently held by LionRock (31.05 per cent of the club), while the rest will help cover outstanding Inter debts and allow them to start the new season with fresh funds.
With the terms of the agreement, if Suning do not keep up loan repayments, then Oaktree Capital will be able to take control of Inter.
It is not entirely different to the Elliott Management Corporation loan to previous Milan owner Yonghong Li, who failed to repay it and saw the club essentially repossessed.