Originally Posted by WWITT
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.
Someone send this lad some rep for me please.