Club Refinances Construction Debt

The Club today (Friday 20 September) closed its refinancing of the loans put in place to support the construction of our new stadium.

• The Club has completed a £637m multi tranche, long term financing anchored by a Private Placement and new bank facilities.
• A first time issuer in the US Private Placement market, the Club raised £525m of finance and was significantly oversubscribed and supported by several highly established international institutional investors.
• The refinancing successfully extends the longest debt maturities to 30 years.
• The average maturity of the total debt package of £637m is 23 years and the weighted average coupon, including the new bank facilities, is 2.66%.
• Bank of America Merrill Lynch acted as the Lead Placement Agent and Sole Bookrunner, with HSBC serving as a Co Placement Agent for the Private Placement.
• Bank of America Merrill Lynch provided a £112m term loan to complete the refinancing, with HSBC providing an additional revolving facility.
• As part of the financing the Club obtained a strong investment grade credit rating from two agencies.

The Club's strong profile globally realised extensive support and oversubscription from a range of leading Private Placement investors actively supporting the sports sector.

The success of the refinancing demonstrates the confidence held by the market in the Club's overall strategy including:

• The strong year-on-year financial performances of the Club, one of only three English Premier League (EPL) teams to have been consistently profitable since the inception of the Premier League.
• Strong performances in the EPL and Union of European Football Associations (UEFA), having qualified for European competitions in 13 of the last 14 seasons and making the Champions League Final in 2019.
• Delivery of the new Tottenham Hotspur Stadium, one of the world's best multi-use stadiums, which includes Europe's only purpose-built National Football League (NFL) venue.
• World class training facilities to support the first team and ongoing youth development.

The proceeds from the issue will be used to repay the short-term bank debt which was raised during the construction phase of the stadium from Bank of America Merrill Lynch (BofAML), Goldman Sachs and HSBC Bank plc (HSBC).

The refinancing has successfully repositioned the Club's balance sheet by extending the debt maturities with the longest maturities out to 30 years, lowering and fixing financing costs, positively impacting annual cash flow and adding financial flexibility for years to come. The average maturity of the total debt package of £637m is 23 years and the weighted average coupon, including the bank facilities is 2.66%.

The Club were advised on the financing by Rothschild & Co.

Daniel Levy, Club Chairman, said: "We have continued to develop Tottenham Hotspur in line with prudent financial management and investment into the Club's key infrastructure and our fast-growing global brand, successfully matching long-term assets with long-term financing. It is a tribute to the team on and off the pitch that we have achieved what is considered to be one of the most attractive financing deals in the world of sport. Our Club is extremely well positioned as we move forward delivering the excitement and entertainment of Premier League and Champions League football, NFL, rugby, concerts and much more."

Commenting, Elliott McCabe, Managing Director in Bank of America Merrill Lynch's Sports Finance & Advisory Group, said: "The management team of THFC continue to position the Club for long term success by growing the brand through ongoing investment, particularly in relation to the iconic new stadium. This is reflected in the strong market reception met by Tottenham Hotspur as a first-time issuer in the Private Placement market."