The buyers did not take advantage of bank loans but of an installment payment of part of the agreed amount (between 200 and 300 million euros) with an interest rate of 6-7%
These are very hot days in via Aldo Rossi. The operation for the acquisition by RedBird of the Rossoneri company has been completed, with the Elliott fund that guarantees the continuity of the great work done so far, which led to the conquest of the first tricolor in 11 years, in the season that also saw the Devil return to “his” Champions, with the confirmation of the entire management staff, now you can start thinking about the transfer market. But we can also go into the details of the deal that can relaunch Milan’s ambitions at the highest levels.
confirmations
–
In fact, the rumors published by “CalcioFinanza” which revealed how the change of hands took place was confirmed. After the signing, that is the acquisition by RedBird of the club, the closing is now awaited, the conclusion of the transfer of ownership, expected by September. Valuation of 1.2 billion euros confirmed. The US company of Gerry Cardinale will not make use of financing from the banks, with JpMorgan which together with Bank of America Merrill Lynch, have only acted as an advisor to Elliott), but there will be a “vendor loan”. What does it mean? That the loan, which should be between 200 and 300 million, will be granted directly by Singer to RedBird, an operation that happens regularly in the world of finance for transactions of this kind. In practice, a deferred payment in installments of a part of the agreed amount for the sale.
interest rate
–
For this “vendor loan”, the interest rate would have been set at around 6-7%, therefore in line with the cost of money for market operations. Just think of Inter Milan, whose bonds (bonds) are traded at a rate of around 9%. AC Milan, which was sold with a better financial situation than its city rivals, therefore represents a lower credit risk for the sellers, hence the “discount” on the interest rate. If then RedBird were to resell the company at a higher price than the one paid, the Elliott fund would receive a kind of premium that would not exceed 6% of the total value.
June 2 – 7:08 pm
© REPRODUCTION RESERVED
#RedBirdElliott #details #billion #Milan #operation