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Tottenham Hotspur nets £400 million stadium loan
May 31, 2017 / 2:38 PM / 2 months ago

Tottenham Hotspur nets £400 million stadium loan

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Britain Soccer Football - Tottenham Hotspur v Manchester United - Premier League - White Hart Lane - 14/5/17 General view of a rainbow during the ceremony after the game Action Images via Reuters / Andrew Couldridge Livepic

LONDON (Reuters) - English Premier League football club Tottenham Hotspur has signed a £400 million, five-year loan to finance the construction of its new 61,500-seat stadium, the club announced on Wednesday.

The loan will replace a £200 million interim financing that was put in place in December 2015, £100 million of which has been drawn to date.

The financing is secured by the new stadium and related commercial and match day revenues.

The loan pays a margin ranging from 225bp to 300bp over Libor.

There are no early repayment penalties or amortisation requirements and no material financial covenants until the stadium opens.

Britain Soccer Football - Tottenham Hotspur v Manchester United - Premier League - White Hart Lane - 14/5/17 A message is displayed as Tottenham's Jan Vertonghen is in action Reuters / Dylan Martinez Livepic

Bank of America Merrill Lynch, Goldman Sachs Bank and HSBC Bank are lenders on the new loan and also provided the interim financing.

Britain Soccer Football - Tottenham Hotspur v Manchester United - Premier League - White Hart Lane - 14/5/17 Tottenham fans pull of the boards during the ceremony after the game Action Images via Reuters / Andrew Couldridge Livepic

In addition, HSBC are also providing a £25m working capital facility.

Tottenham Hotspur - runners-up in this year’s Premier League - has spent over £340m on the acquisition of land, the planning process and build costs to date. That was financed with resources from the club and drawings under the interim financing.

The remaining costs of the project will be funded from the new loan and the club. ENIC, which owns 85.55% of the club, will also commit a £50 million letter of credit facility to support the stadium financing.

Rothschild advised the club on both the interim and the new facility, with Slaughter & May providing legal advice on the financing and construction. DLA Piper acted for the lenders.

Editing by Christopher Mangham

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