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United take on more debt

Manchester United have taken out a further $125million in long-term debt following a refinancing of borrowings related to the Glazer family’s 2005 takeover.

A filing to the U.S Securities and Exchange Commission (SEC) confirmed on Friday that United have restructured their $425m senior secured notes, which were due for repayment next year.

The refinanced debt now amounts to $550m, at a higher interest rate of 5.36 per cent. The previous rate, secured in 2015, was 3.79 per cent.

At that higher rate, United’s annual interest payments will rise by approximately £10m at the current exchange rate. During the 2024-25 season, United paid out £37m in interest costs.

Having previously been due for repayment in June 2027, United’s terms have now been extended until 2031. United’s senior secured notes are one of the club’s two tranches of long-term debt, alongside a secured term loan facility worth $225m.

Both are a legacy of American businessman Malcolm Glazer’s controversial leveraged buy-out of United in 2005, which loaded £604m of debt onto the Old Trafford club.

Such new activity reflects tactics employed by Ratcliffe at INEOS, the conglomerate which made him his fortune. Since inception, INEOS has been funded mostly by debt, with refinancing taking place regularly throughout the company’s 28-year history.

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