Inter's Financial Situation

[brehme1989]

Well, no one is going to pour 200m on a 300m bond. If you had a 200m portfolio, you'd put around 5ish to this bond. And it'd give you a solid return which is probably exceeded only by commercial real estate investments.
Short term? Yes, why not? You could speculate that the stocks will keep going up, but this is much safer.

5% on a corporate bond is not crappy.

 

[.h.]

Well, no one is going to pour 200m on a 300m bond. If you had a 200m portfolio, you'd put around 5ish to this bond. And it'd give you a solid return which is probably exceeded only by commercial real estate investments.
Short term? Yes, why not? You could speculate that the stocks will keep going up, but this is much safer.

5% on a corporate bond is not crappy.

I don't agree that it is much safer

 

[brehme1989]

So you think there's a high possibility that Inter goes bankrupt within 5 years?

edit: Who cares about pensions funds? We're not a government and we're not a financial institution.

 

[.h.]

Bankrupt not necessarily but potentially unable to repay 300mil in 5 years time ;-)

 

[brehme1989]

It's essentially going to lead to that anyway.

With Suning we can expect to keep increasing our non-sporting revenues and there's also the Champions League. Make it there 4 times and you get your money back with substantial interest that makes all of this feasible.

Again, the 5% figure is not low for a corporate bond. I don't know what number you were expecting to see. Venezuela's PDVSA was like 8,50% (and up to 13% iirc) and they're not paying shit.

 

[.h.]

Looks like United were 8.5% in 2010 and arsenal were 5.2% recently

We are a lot riskier than either of those.

 

[brehme1989]

It depends on the value of the bond issued. I'm unaware of their bonds.
Also, Man Utd was like over 1bn euros in debt iirc. Agreed on Arsenal if it's comparable with our situation, but as I said, a 5,5% rate would be reasonable for Inter.

edit: Just saw the Arsenal one, it expires on 2029, so it's not really comparable. I think the value is similar to ours but can't check atm.

 

[K.I.]

Yah i am guessing some companies / investors may decide to put some money in the bond, if you look at it that the whole 200M is going into the bend then its a crappy return but if an investor has like some percentage of his portfolio in it it their risk decreases.

 

[Brancazinho]

Well ultimately the people taking the bond. It wouldn't be untypical to Dutch auction.

Bonds - people lend us money at a fixed annual interest rate with the full loan repayable on a set day. For example if you were to LEND me 100k, for 5 years, you would expect me to pay back 20k+interest every year. With a bond, we just pay the interest every year then the full 100k after the 5 years.

5% is a shit rate to be honest. I wouldn't take it myself.

This would had been true a few years back, but since the central banks distorted the markets 5% isn't bad at all for a club like Inter.
Junk bonds with companies in a way worse state than Inter are going for mid 5% for christ sake and for 10+ years.

Plus Inter has a cash stream relatively easy to predict and Suning's signature.

All in all I would be really surprised if the bond weren't being subscribed because of the interest rate. I suspect something else, like the bond's seniority to other debts contracted by Inter or something like that.

 

[Michael]

GdS - Inter must make 60-70 million by June 30, 2018 in order to avoid fine or sanctions from UEFA. These three things will help: more sponsors which Suning is actively trying to get, sales in transfer market and Champions League.

 

[Universe]

Ah piss off UEFA. Go bother Milan instead.

 

[Dude]

Bond. Inter's Bond.

 

[Kenny]

Inter Bonds, Inter Bonds, Pazzi come te...

 

[ADRossi]

GdS - Inter must make 60-70 million by June 30, 2018 in order to avoid fine or sanctions from UEFA. These three things will help: more sponsors which Suning is actively trying to get, sales in transfer market and Champions League.

1) Get Brazzers to sponsor us
2) Pray to god Kondogbia is redeemed
3) Finish 4th

profit

 

[Caecuban]

GdS - Inter must make 60-70 million by June 30, 2018 in order to avoid fine or sanctions from UEFA. These three things will help: more sponsors which Suning is actively trying to get, sales in transfer market and Champions League.

Should not be too hard if we make it to Champions League, which should earn us at least about 40m (even if we have a shitty campaign).

 

[K.I.]

Also some sales may help

Barbosa
Nagatomo
Ranocchia

Eder
Dalbert [if he doesnt improve]
J Mario [if he stays the same rest of the season]

 

[Sokrates]

GdS - Inter must make 60-70 million by June 30, 2018 in order to avoid fine or sanctions from UEFA. These three things will help: more sponsors which Suning is actively trying to get, sales in transfer market and Champions League.

I don't understand the last point.
If we reach CL, we don't earn any money before 30.06.2018.

 

[brehme1989]

Agreed but I guess there might be a way to get a very short term loan in early June and repay it in September with the CL group money or something if that's the case.

 

[K.I.]

Yah i am guessing it will be covered somehow until it official comes in.

 

[DARi0]

I don't understand the last point.
If we reach CL, we don't earn any money before 30.06.2018.

The Beneamata must bring in around €60-70m by June 30 to avoid sanctions, which they hope to achieve with new sponsorship, player sales and possibly by putting a portion of Champions League revenues into this year’s budget.

The top four in Serie A will all go directly to the group stage of next year’s competition, so the club could put that into the budget for this season once they’re sure of qualification.