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.
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