General view during training AS Roma Training at Trigoria Training Ground, Rome, Italy, on April 23, 2018. File Photo / Reuters
Rome: Italian football club AS Roma SpA is repaying its bond investors early and in full as it seeks to lock in new debt.
The Serie A team, which issued debt via a special purpose vehicle housing AS Roma’s media and sponsorship rights, will redeem all of its €275m ($271m) of outstanding bonds maturing in 2024 at a price of 101.3 cents over the euro, according to a corporate document sent to investors on Monday. The debt was set to mature in 2024.
The redemption of the notes will be conditional upon access to sufficient funds obtained from a new debt financing transaction, the statement said. The deal will become effective on October 27, with the debt financing transaction having to close on the business day before. A part of the redemption will also be financed with cash available.
Junk-rated borrowers nearing medium-term maturities are looking to lock in refinancing costs before central banks hike interest rates even further. The price they have to pay to extend their debt profile has already sky-rocketed since the beginning of the year, but they are rushing in the worry that access to new financing could get even costlier.
The bonds had been trading at 91 cents on the euro prior to the announcement, according to Bloomberg data. The price later bounced to near the level outlined in the redemption offer.
AS Roma, which currently ranks near the top of the Italian league and is coached by Jose Mourinho, was taken private earlier this year after US billionaire Dan Friedkin, who already owned the majority of the club’s equity, made a tender offer for the rest of its shares.
