AS Roma to restructure debt with €275m bond offer

July 30 – AS Roma will issue €275 million in bonds to help restructure debt repayments, the Italian club has announced.

The club’s planned five-year bonds will be used to finance a €215.5 million credit facility and a €2.6 million dividend to the club, according to a presentation to investors. The club will safeguard bondholders by making payments via a special purpose vehicle, Roma Media Bidco.

In the 2017/18 season the three-time Serie A champions generated  a record revenue of €250 million and reduced losses from €42 million to €25 million, according to the Roma’s financial records, but total debt rose by €26 million.

Roma generated media cash inflows of €229.5 million in the 2018/19 financial year and drew €213.5 million of cash for debt servicing. Last season AS Roma finished the Serie A in sixth place, missing out on Champions League qualification.

Roma will become the third Italian club in less than two years to issue bonds in order to refinance club debt. In December 2017, Inter issued secured bonds worth €300 million and last February Juventus revealed a similar scheme, raising up to €200 million.

Contact the writer of this story, Samindra Kunti, at moc.l1580241307labto1580241307ofdlr1580241307owedi1580241307sni@o1580241307fni1580241307