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Major refinancing sees Manchester United slash interest bill by £10m a year

United's present debt is £370million, the sum remaining from a highly leveraged takeover by the Glazer family in 2005

Simon Stone
Friday 24 May 2013 07:04 EDT
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Patrice Evra and Nemanja Vidic lift the trophy outside Old Trafford
Patrice Evra and Nemanja Vidic lift the trophy outside Old Trafford (Getty Images)

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Manchester United have cut their interest bill by £10million a year after a major refinancing through Bank of America.

United have refinanced £177.78million of outstanding sterling bonds, on which they are currently paying a rate of 8.75 per cent.

In addition they have refinanced approximately £17million of dollar bonds on which they are currently paying 8.375 per cent.

Through the new loan with Bank of America, club sources estimate they will save approximately £10million per year.

United's present debt is £370million, the sum remaining from a highly leveraged takeover by the Glazer family in 2005.

Despite dire warnings of United's financial position since that time, the Old Trafford outfit have won five Premier League titles and played in three Champions League finals.

With their commercial income rising rapidly, it now seems that United are able to compete in the transfer market, hence the £24million arrival of Robin van Persie last summer.

It is also thought new manager David Moyes will have funds to spend should he wish this summer.

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