Barcelona raises €105M bond, oversubscribed 200% in under two hours
What's the deal? FC BarcelonaDealroom has a profile for this one. Try Dealroom → has raised €105 million ($120 million) through a 10-year bond issue, with Goldman SachsDealroom has a profile for this one. Try Dealroom → acting as lead manager and placement agent. The senior secured notes mature in October 2036 and carry a fixed coupon of 5.14%.
Why now? The operation was completed during president Joan Laporta's visit to the United States for the FIFA World Cup. The entire issue sold out in less than two hours to a select group of US insurance companies, investment funds, and pension funds.
What's the endgame? The raise is part of Laporta's long-term financial rebuild of the club. Demand exceeded supply by more than 200%.
The club framed the result as a vote of confidence. "Demand far exceeded the amount on offer, with oversubscription of more than 200 per cent, and the entire issue was placed in less than two hours," Barcelona said in a statement.
By the numbers: The spread demanded by the market fell from 240 to 202 basis points versus the club's previous issue. Barcelona called that a sign of "a more favourable perception of risk and greater confidence in Barcelona's project."
The signal: At €105 million, the deal ranks in the top 10% of all debt rounds raised by sports companies in Spain. The tightening spread and rapid US uptake point to warming investor appetite for European football clubs as credit bets.
Read more: Yahoo Sports
Image credit: dersportmanager
