Press release from Business Wire
Manchester United issues notice of redemption on a portion of its bonds
Thursday, May 23, 2013
Manchester United issues notice of redemption on a portion of its bonds17:16 EDT Thursday, May 23, 2013
MANCHESTER, England (Business Wire) -- MU Finance plc, a subsidiary of Manchester United plc [NYSE: MANU], has today issued a notice of redemption for all £177.78m of its outstanding sterling 8.75% bonds and $22.09m principal of its US dollar 8.375% bonds.
Funding for this bond redemption is to be provided by a committed new facility provided to MU Finance plc by Bank of America, N. A.
The interest rate payable under the new facility will be a variable rate calculated as Libor plus an applicable margin of between 1.5% and 2.75% per annum. The redemption will occur on June 24, 2013. If calculated today, we estimate that the starting rate of interest would be approximately 2.78%, resulting in an interest reduction of around £10m per year.
About Manchester United
Manchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth. Through our 135-year heritage we have won 61 trophies, enabling us to develop the world's leading sports brand and a global community of 659 million followers. Our large, passionate community provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, new media & mobile, broadcasting and match day.
Philip Townsend, +44 (0) 161 868 8148
Director of Communications