Manchester United bond issue in trouble
Despite the fact that the Glazer family, the owners of Manchester United football club, confirmed only last week that the club had raised around £500 million from bond investors, there is concern amongst investment markets today. The £250 million tranche of the sterling denominated bonds have fallen to just 93% of their original face value while the $425 million dollar denominated tranche has fallen to 94.5% of its original face value.
It is unclear as to why investor confidence in the bond issue would appear to have turned down so sharply in such a short space of time but the club appears little concerned at the moment with the £500 million already sitting in the company's bank account. It is not as if the bond issue was unexpected or in fact the situation with the club has changed over the last week, so it is a little bit of a mystery as to why the price has fallen so sharply.
Despite damaging headlines regarding the company's debt situation there are more than sufficient assets within the club to cover these debts and the company itself is still profitable. However, interest payments have increased significantly over the last two years which was the main concern of the financial markets.
Share this..
Related stories
Vauxhall Motors future in the balance
It has today been revealed that GM Europe (General Motors Europe) has today agreed draft takeover proposals with two potential bidders. The bidders are the Canadian company Magna International and RHJ International which is an investment fund bidding to acquire GM's European division. So what will happen to Vauxhall?
The situation regarding Vauxhall, which employs 5000 people in the...
European markets rise on economic recovery hopes
European stock markets are today stronger amid signs that the European economic downturn may not be as bad as first thought with manufacturing figures better than expected. It was the revision of the monthly manufacturing purchasing managers index, for 16 countries within the Euro zone, which caught the eye of investors having been revised upwards from 56.5 to 56.7 with anything above 50 indicatin...
Read MorePrudential set to ask for revised terms for AIG acquisition
It is believed that UK insurer Prudential has approached AIG in relation to the ongoing acquisition of the company's Asian operations. This is an acquisition which has hit the buffers in the UK with regards to liquidity and capital adequacy requirements with the FSA stepping in to delay the purchase. However, in a move which would ultimately see AIG receive around USD2 billion less in cash than th...
Read MoreWill Barclays Bank break the coalition?
There is concern within the coalition government, the Conservative Party and the Liberal Democratic Party that the announcement of Bob Diamond's appointment as the next chief executive of Barclays Group could bring cracks in the coalition to the surface. There is no doubt that a number of MPs would rather see a more neutral person brought into the role of Barclays Bank chief executive with Bob Dia...
Read MoreIs your money safe with HBOS?
The last couple of days have seen some heavy selling of HBOS shares with rumours circulating the markets that the group is underfunded and in serious trouble. However, let us take a reality check on the situation, HBOS is a bank which has a good track record, consist of Halifax and Bank of Scotland and recently raised £4 billion from shareholders. The company came out yesterday to quell rumours...
Read More