Sport

The crisis imposes a new breach on FC Porto

Written by admin

The new bond loan costs more than 6 million euros.

Joao Moniz
March 24, 2022 at 10:46 a.m.

Cash flow difficulties have forced FC Porto to proceed with a new bond issue (EO) which will result in an expenditure of more than 6 million euros. This amount refers to the costs of the operation immediately and the new interest that will have to be borne until 2025.Let’s proceed step by step. FC Porto will issue a new EO of €40m, a value that can be increased (at least up to €50m) depending on demand. This operation is divided into two parts. The first aims to exchange up to 5 million OE bonds issued in 2021 (with a unit value of €5) and maturing in November 2023. This maturity can reach €25 million. Since the interest rate now offered by the dragons is higher (5.25% instead of 4.75%), this exchange involves spending an additional €187,357 in interest in a year and a half. A bonus of 5 cents per bond will also be paid to those who accept the exchange, at an additional cost of up to €250,000.
Then there is the second part of the operation, in which FC Porto issues new bonds, in a maximum volume of 5 million. In other words, the new debt contracted can reach €25 million. With a rate of 5.25%, the annual charges are €1.31 million, which gives €3.93 million until April 2025.Finally, in the prospectus sent to CMVM, FC Porto reveals that the operation has associated costs (commissions and fees) of €1.7 million. After all, this operation, which aims to immediately strengthen liquidity and postpone the payment of the debt already contracted (moving to April 2025 instead of November 2023) costs 6.07 million euros. In addition, the total outstanding amount of EO increases from the current €64.8 million to €89.8 million.

view comments

About the author

admin

Leave a Comment