The Italian club’s subsidiary Inter Media Communication will carry on the issuance that has not yet attracted the interest of investors.
Inter Media and Communication, the manager of media, broadcasting and sponsoring activities of Iconic Italian football team FC Inter, said that on 26 June, Thursday, it will repay earlier than scheduled the 2022 6.75% 415 million euros bond issuance maturing in 2027 (see here a previous post by BeBeez). On 25 June, Wednesday, the Italian team will receive a financing facility that will provide the necessary cash for the deal (press release).
FC Inter will repay a total of 412 million, 101.6875% of the bond’s face value that already decreased by 15 million after a partial buy back (1Q25 results of Inter Media e Communication, page 6), and accrued and not yet paid interest.
Since 2022 FC Inter improved its financials while in 2024 Oaktree Capital Management took over the asset from Chinese Zhang Family (see here a previous post by BeBeez) and carried on a 52 million recapitalization (1Q25 results of Inter Media e Communication, page 29).
However, the new issuance has not yet attracted the interest of any investor and Oaktree could pour equity in FC Inter and shrink the new bond’s size.
The proceeds of 2022 bond refinanced a previous issuance of 375 million with a 4.875% coupon, maturity on 31 December 2022 and split in two tranches: a 300 million in 2017 (see here a previous post by BeBeez) and 75 million in August 2020 (see here a previous post by BeBeez). Such an issuance refinanced a 208 million loan (maturing on 1 July 2019) that Goldman Sachs provided in 2014 when Indonesian businessman Erik Thohir invested in FC Inter. Such resources repaid a credit line for the working capital. The further 75 million financed FC Inter activity.
The 2014 Goldman Sachs loan initially amounted to 230 million was part of Thohir’s acquisition of FC Inter from the Moratti Family. In 2016, Chinese conglomerate Suning, a company of the Zhang Family, acquired the team.
In May 2024, Oaktree took over FC Inter as Suning defaulted the payment of a 395 million PIK bond issued in 2021 with a 12% coupon for a total of 275 million.
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