While Milan soccer team is still looking for a new investor to refinance its 303 million euros debt, the company has called a meeting next May 2nd in order to evaluate the possibility to postpone the maturity of its bonds by 6 months.
At the moment AC Milan has two bonds listed at the Wiener Stock Exchange both subscribed by Elliott fund. A first bond has a 73.2 million euros size, while the second has a 54.3 million euros size. Both bonds are maturing next October and pay a 7.7% fixed coupon.
Other 175 million euros of debt are on the parent holding level (Rossoneri Sport Investment Lux) and are paying a 11.5% fixed coupon. This is a loan also entirely subscribed by Elliott.
BofA Merrill Lynch, advisor of both Milan and its Chinese shareholder Yonghong Li, is still looking for new investors. Hps Investment Partners, a spin-off of US hedge fund Highbridge, who was in exclusive talks at the end of December 2017 with Elliott, without coming to an agreement, might refinance the bonds for about 250-300 million euros, securing them by Milan’s TV rights.
