Manchester United have refinanced the Glazer debt in a move that increases the club’s borrowing by almost £100million.
The news comes as United continue to be linked with £80m-rated West Ham midfielder Mateus Fernandes amid reluctance at Old Trafford to match Manchester City’s £120m bid for Elliot Anderson of Nottingham Forest.
It also follows intense speculation that some members of the Glazer family are looking to sell their stake in the club.
The refinancing package will increase United’s overall financial debt to £728m, of which £485m dated back to the Glazers’ leveraged takeover at Old Trafford in 2005.
The latter figure was split into two tranches, the largest of which was made up of £317m in senior secured notes originally issued in 2015 with a fixed interest rate of 3.79 per cent.
Manchester United continue to be linked with £80m-rated West Ham star Mateus Fernandes
It was due to be repaid next year but United have been in talks with banks over refinancing it through the private sector.
The club confirmed in a filing to the US Securities and Exchange Commission on Friday that they have secured a new loan worth £410m which covers the £317m debt and generates an extra £93m in cash for ‘general corporate purposes’.
The filing, signed by co-chairman Joel Glazer, shows that the deadline to repay it has been extended until 2031, although United have agreed a higher rate of 5.36 per cent which is expected to cost the club an additional £9.7m-a-year in interest.
The extra money could feasibly be used to strengthen United’s hand during what will be an expensive summer in the transfer market. The club also have access to £250m through a revolving credit facility after repaying £110m of it since April.
Joel Glazer (left) signed the filing as United’s co-chairman on a new loan worth £410m
United have already signed Brazil World Cup midfielder Ederson from Atalanta in a deal worth up to £39m, and are in competition for Fernandes with a number of Europe’s top clubs including Paris Saint-Germain and Arsenal.
West Ham will sell the 21-year-old Portuguese star following their relegation from the Premier League, but want a fee of around £80m.
That would be within United’s budget but they are refusing to get into a bidding war over their No.1 target Anderson after City had a British record bid of £120m rejected by Forest.
United could also sign a third, cheaper midfielder as well as a left-back, forward, back-up goalkeeper and possibly a centre back.
