Italian Serie A club side Inter Milan has announced an offering of secured bonds worth $355.5 million, which the club is set to promote in cities across Europe.
Inter Milan, owned by Chinese conglomerate Suning, said the senior secured notes will mature in 2022. The offering is being managed by Inter Media and Communication, managers and operators of the club’s media, broadcast and sponsorship business.
A club statement read: “The net proceeds of the offering of the Notes will be used (i) to repay the existing financial indebtedness of the Issuer, (ii) to repay a short term working capital line of Inter Milan, (iii) for Inter Milan’s general corporate purposes, and (iv) to pay fees and expenses in respect of the offering of the Notes.”
Goldman Sachs International will act as global coordinator and physical bookrunner of the proposed offering and UBI Banca is co-manager. Suning sealed a deal to take over Inter in June 2016 and set a target of restoring the status of the Milan giant to being one of the world’s top 10 football clubs. Suning acquired a majority stake of 68.55% in Inter for around $317m.
Inter took out a $270m loan from Goldman Sachs in 2014 through former majority shareholder, Indonesian businessman Erick Thohir, before he agreed on the deal with Suning. Italian newspaper Il Sole 24 Ore said an international roadshow to promote the bond issue will take in London, Paris, Frankfurt and Amsterdam, as well as Milan.
As of June 30, 2017, Inter had total debts of $70m, though $260m of that is owed to owners Suning Group.