Manchester United Refinances Debt With $550m Secured Notes Issue

Manchester United has completed a major refinancing of its debt arrangements through the issuance of $550m (£410m) in senior secured notes due in 2031.

The Premier League club said the new 5.36% Senior Secured Notes, due 10 June, 2031, will be used to prepay the outstanding principal on its existing 3.79% Senior Secured Notes, which had been due to mature on 26 June, 2027.

Proceeds from the transaction will also cover accrued and unpaid interest, the applicable make-whole premium and general corporate purposes, according to the club’s filing.

The refinancing extends the repayment profile of Manchester United’s note debt by almost four years, moving the maturity date from 2027 to 2031. However, the new issue carries a higher interest rate than the existing notes, reflecting the changed borrowing environment since the club last refinanced its bond debt in 2015.

Manchester United has also amended and restated its existing term facility and revolving facility agreements alongside the notes issue. The club said the amendments align both facilities with the covenants, baskets and financial covenant levels contained in the new note purchase agreement.

As part of those amendments, the maturity of the club’s term facility has been extended from 6 August, 2029 to 10 June, 2031, bringing it into line with the new secured notes.

The note purchase agreement includes financial and negative covenants described by the club as substantially similar to those contained in the existing 2027 notes agreement.

The notes were offered and sold through exemptions from registration requirements under the Securities Act of 1933 and have not been registered under the Securities Act or applicable state securities laws.

In its filing, Manchester United noted that statements relating to the prepayment of the 2027 notes and associated transactions are forward-looking and subject to risks and uncertainties.