Bloomberg reports that Red Football Joint Venture Ltd. will ‘prepay 100 percent from the outstanding loan on Nov. 22,’, according to a corporate filing by the Premier League side.
The voluntary free-payment notice has been signed by co-chairman of Red Football, Joel Glazer.
“From a portfolio manager’s standpoint, it’s tantamount to ‘the Grinch who Stole Christmas,’” said Mark Baker, chief executive officer of ADM Capital Europe, to Bloomberg.
“The Glazer’s are eliminating arguably the best asset in the European High Yield universe from a risk/return perspective. Delighted for the fans but our portfolio will miss the 16.25% coupon.”
If the Glazers had held the PIK debt until it was due to mature in 2017 they would have owed around £600million.