For the refinancing of the Inter loan all that’s missing is the signature, but the deal isn’t done yet. While preparations are underway for the procession through the streets of Milan and the celebrations of the 20th scudetto, Nerazzurri president Steven Zhang is working to try to complete the 400 million agreement with the US fund Pimco in order to repay the debt with Oaktree expires on May 20 and remain at the helm of the club. As reported by Bloomberg, citing anonymous sources close to the top management of the companies involved, the negotiations could however end in nothing.
The negotiations for the refinancing of Inter
Together with the investment banks Goldman Sachs and Raine, who have long been in charge of managing the reorganization of the company’s accounts, Zhang is apparently looking for a solution to refinance the debt of around 380 million contracted in 2021 by the Luxembourg holding company Grand Tower, through which the Chinese family controls the club, through the Californian Oaktree fund.
According to what was reported by the American media specialized in finance Bloomberg, however, “the talks between Suning and Oaktree to refinance the plant at a higher rate than the original are still ongoing, said people familiar with the matter who asked to remain anonymous. The new loan structure would have a shorter maturity.”
“Separately – specifies the financial channel – the owners of the Nerazzurri club are discussing an agreement with Newport Beach-based Pimco to refinance Oaktree. The talks are still ongoing and could be concluded without being able to reach an agreement, some sources said. Spokesmen for Inter, Oaktree and Pimco declined to comment. Several calls to Suning Holdings went unanswered.”
The most concrete option at the moment would however remain the 400 million loan from the Pimco fund, under more favorable conditions than a renewal of the expiring loan. Once the amount owed to Oaktree has been paid, the Grand Tower holding company should be left with approximately 100 millionthe result of the sum between the 15-25 million remaining from the new loan and the approximately 80 million unused from the old one, which would allow the Zhang family to manage Inter with an eye on the sustainability of the accounts and respecting the financial Fair Play standards.
The interest of the Saudi consortium
Meanwhile, Saudi investors appear again, who would be at the window waiting to discover the outcome of the negotiations and, if necessary, submit an offer. According to rumors reported by The sun 24 hoursin fact, the nature of Pimco’s loan would be that of a bridge financing aimed at the sale of a share Inter’s shareholding. Some insiders would have underlined that a 1,900 billion dollar investment fund like the Californian one would not move without the real interest of a buyer and, for this reason, a consortium from Saudi Arabia would be interested in the documents on the accounts of the Nerazzurri club starting a due diligence on the company behind the scenes.
As he remembers Tuttosportthe Nerazzurri club closed the 2022-23 budget with a deficit of 84 million, an improvement compared to the 140 million of the previous financial year, but the forecast for the 2023-24 financial year is a figure around 40-50 million losses. Despite the lower income due to the elimination in the Champions League round of 16, in fact, the club will be able to count on greater revenues from market capital gains and TV rights from Serie A, which went from 87 to 100 million thanks to the victory of the scudetto, which it also brings bonuses on sponsorships, such as the new agreement for the shirt with Betsson Group worth 27-30 million per season.
