ROME: Roma have announced the issue of a €275m bond in a move to help restructure debt repayments.
The club’s planned five-year senior secured notes sale will then be used to finance a €215.5 million (US$239.7 million) credit facility and a €2.6 million (US$2.89 million) dividend to the club, according to a NetRoadshow presentation released to investors on Friday.
Roma will safeguard bondholders by making payments via a special purpose vehicle, Roma Media Bidco, which will be separate from the main company responsible for buying and selling players. A waterfall payment structure that prioritises debt servicing is also apparently going to be used.
The club’s financial statement for the 2017/18 season showed the three-time Serie A winners had a record revenue of €250 million (US$278 million) and a reduction in losses from €42 million (US$47 million) to €25 million (US$28 million). Total debt did rise €26 million (US$29 million) however.
Additionally, the presentation to investors revealed Roma generated media cash inflows of €229.5 million (US$255.2 million) in the 2018/19 financial year, and drew €213.5 million (US$237.4 million) of cash for debt servicing.
The team ended the 2018/19 season in sixth place, missing out on qualification for the lucrative Champions League, European soccer’s elite club competition.
By issuing the bonds, Roma are set to become the third Italian soccer club in less than two years to do so in order to refinance debts. In December 2017, Inter issued secured bonds worth €300 million (US$333 million), while Juventus announced the issue of a bond worth up to €200 million (US$222 million) in February this year.
The move comes as the club prepare to take on the building project for their planned new stadium. Back in February – shortly after the Stadio della Roma project was given the green light – the mayor of Rome, Virginia Raggi said that new venue will receive €1 billion (US$1.1 billion) of private financing.
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