Newcastle United owners PIF have secured a £14bn seven-year senior unsecured loan, which has been described as the “largest self-managed term loan ever made for general corporate purposes”.
Fahad AlSaif, Head of PIF’s Global Capital Finance Division, said: “This new facility is a strong endorsement of PIF’s medium-term capital raising strategy.
“It is a significant achievement for PIF to raise a record size term credit facility in the longest term in history for a loan of its size that is underwritten by an unprecedented number of diversified lenders. PIF will continue to explore a variety of debt financing sources as it meets its strategic objectives.”
Although this will not have a direct impact on Newcastle, it is a sign yet again of the ambition and business savvy of the owners, who are looking to make the Magpies a force in the Premier League and across Europe.
This follows PIF investing a further £70.4m of equity in the football club, taking its total investment to £450m to date.
In a statement issued by Newcastle, “the capital injection follows a wide range of investments in the club” including investment in playing equipment, improvements to St James’ Park, the expansion of the training ground, in addition to the Hiring several top executives to build the commercial department.
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United added that “further investment is expected to reflect the ownership group’s long-term commitments to Newcastle United.”
Chief Executive Darren Eales explained: “We are at the start of a long-term plan that aims to build a club that can consistently compete at the highest levels of English and European football.
“We need to develop the entire business, as well as the gaming team. And we must do so while respecting the rules of financial fair play. This additional investment allows us to continue implementing the business plan.”
