Pimco Deal With Inter Milan Owner At Risk Ahead Of Deadline
Date
5/15/2024 4:12:35 PM
(MENAFN- Live Mint) " (Bloomberg) -- Talks between the owner of Italian football club FC Internazionale Milano and Pacific investment Management Co. are at risk of breaking down with five days to go before a key deadline.
Inter's owner Suning Holdings Group Co. and Pimco are struggling to reach an agreement on new funding to refinance a private placement bond of around €375 million ($407 million) before the debt comes due on May 20, according to people familiar with the matter, who asked not to be named because they aren't authorized to talk about it.
Pimco has been in negotiations for weeks with Suning and the Italian football club to refinance the debt provided by Oaktree Capital Management in 2021.
The situation remains fluid and there's still a possibility that the parties could strike a deal.
A €435 million offer of private bonds maturing in 2026 with a 15% payment-in-kind coupon has been under discussion, one of the people said. A small chunk of the financing would go to boost the finances of the club, the person added. Suning didn't respond to multiple phone calls and an email seeking comment. Spokespeople for Pimco and Oaktree declined to comment, while a representative for Inter Milan didn't immediately respond.
Bloomberg News reported in April that the Inter owners had been discussing a debt facility with Pimco to refinance Oaktree. At the time, Suning was also in talks with Oaktree to see whether it would be willing to extend the facility.
The Oaktree loan originally had an interest rate of around 12%. The debt is secured on Suning's holding in the Milan-based football club.
Inter Milan is one of Italy's most-storied football clubs. Founded in 1908, it won Italy's top league this season and was runner-up in the UEFA Champions League - Europe's most important club trophy - last year.
--With assistance from Yuling Yang and Guy Collins. More stories like this are available on bloomberg ©2024 Bloomberg L.P.
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