Originally Posted by WWITT

Hi,

Newbie here.

The investors buying the bonds would pay the club £600m and in return they get 5.25% (probably a bit higher in reality) in annual interest paid to them by the club over let's say a period of 10 years. When the 10 year period is finished they then get repaid the £600m in full. They also would be given security in the form of Manchester United's assets (like the stadium etc).

The club would then use the £600m to repay the current Senior debt and PIK holders which have interest rates of 8% and 14.25% respectively.

The whole point of course being that the club would be able to significantly reduce the amount it pays out annually in interest.