Tottenham Hotspur are spreading the financial burden of their new stadium by refinancing more than UK£400 million (US$486 million) of bank debt, according to the Athletic, reports, www.sportspromedia.com/.
The building of Tottenham's UK£1 billion (US$1.2 billion) state-of-the-art home, which opened in April, saw the club borrow UK£637 million (US$774 million) from Bank of America, Goldman Sachs and HSBC.
That loan was due to be paid back by April 2022, but now the Athletic reports that Bank of America has launched a new private placement scheme, turning approximately UK£400 million of that debt into bonds with staggered maturities ranging between 15 and 30 years. The bond issue apparently came after the bank reached out to institutional investors in the US last week.
Though in the immediacy the deal does not decrease Tottenham's net debt, which is reportedly approaching UK£600 million (US$729 million), it relieves pressure on the club to pay the amount back by pushing repayments further into the future.
It is reported the money raised by the bond issue will be used by the Premier League team to pay off the bank loans, which have an earlier maturity date.
