Italian football giants Juventus have announced the issue of a bond worth up to €200 million ($226.5 million) in a bid to refinance the club’s debt.
Premier Serie A club’s non-convertible bond loan in the European Union will be managed by Morgan Stanley and UBI Banca. The club have said the five-year bonds are to be released in one or more tranches by June 30, with placement reserved for qualified investors and for a total amount between €100 million ($113.25 mn) and €200 million ($226.5 mn).
The Juventus Board of Directors in a resolution has approved the proposal to issue bonds to re-fund the club debts. Juventus Football Club had announced the placement of €175 million non-convertible bond due on February 19 for qualified investors. The notes will be issued at a price of 99.436% and will pay a fixed annual coupon of 3.375%. The Issuer will request for admission of the notes to listing on the multilateral trading facility Global Exchange Market of Euronext, Dublin. The settlement of the notes is expected on February 2019, the club has stated in a Press release.
The successful transaction has attracted orders in excess of €250 million with demands coming from Asia, Germany, France, United Kingdom and Italy. The purpose of the issuance is to provide the Company with financial resources for its general corporate purposes, streamlining the structure and the maturity of the debt.
Morgan Stanley is the Lead Manager and UBI Banca is the Co-Lead Manager in connection with the placement of the notes. The Managers have been advised by Allen & Overy – Studio Legale Associato and the Company by Pedersoli Studio Legale, the release added.
The bonds will not be offered or sold in the USA or to the account or benefit of the US persons, states the release.
Juventus had closed the 2016/17 season with a profit of €42.6 million ($48.2 million) and revenues of €562.7 million ($637.2 million.