Inter plays the private debt game to be refinanced

Inter, engaged in the Champions League final against Paris Saint Germain on 31 May, is simultaneously playing another game in the financial field. FC Internazionale Milano is probing the private debt market to refinance some 400 million euros of high-yield bonds secured by the club's sponsorship and media rights, according to sources close to the deal. The club is resorting to private placements of securities with institutional investors, with the aim of replacing bonds maturing in February 2027 issued by Inter Media and Communication, the vehicle that holds Inter's sponsorship and television rights, according to Bloomberg.

So-called US private placement notes, typically purchased by insurance companies, pension funds, and asset managers in Europe and the US, often offer longer maturities than traditional high-yield bonds. However, negotiations are still at a preliminary stage and the Nerazzurri company is considering other refinancing solutions on the credit market. Both Inter and shareholder Oaktree Capital Management, which took over control of the club last year after the default of Suning Holdings Group, have not commented on the press rumours.

If successful, Inter's private debt transaction would follow the example of the one completed by AS Roma, which had already resorted to private placement to refinance its junk bonds in 2022. Other European clubs, such as FC Barcelona and Tottenham Hotspur, have moved on the same ground.

Inter managed to reduce its losses from €85m to €36m in the fiscal year ending June 2024 and now sees revenues bolstered by the Scudetto won last season, which brought the second star on the Nerazzurri's jersey, and the Champions League final scheduled for 31 May in Monaco against Paris Saint-Germain. The total number of requests for next week's final was more than 300,000 from Inter fans, which saw the allocation of only 18,000 seats, while online prices came close to 32,000 euros per admission.