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Sheffield United looks into convertible loans
England - 07 December, 2006
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English Sheffield United announced plans for a convertible loan notes issue.
It is a long-term loan offer with potential to convert into a stake in the company, and requires shareholder approval, but could raise GBP 10 million for the club. Half of the funds raised would be invested in new commercial ventures.
Neil Warnock could get up to GBP 5 million in additional transfer funds.Warnock would be handed the remainder to strengthen the club in its battle against relegation from the Premier League.
"This fund-raising will allow us to invest further in new players for our first team," said club chairman Kevin McCabe in a statement to the stock exchange, "thereby improving our chances of remaining in the top flight, and to invest further in our off-pitch revenue streams."
An extraordinary general meeting will be held before the convertible loan notes are issued to the Scarborough Investors - a group of companies "directly or indirectly controlled by Kevin McCabe, his immediate family and/or related trusts," according to the statement.
"These continue to be exciting times for Sheffield United both on and off the pitch," added McCabe. "I have said many times before that, whilst football will always remain at the heart of Sheffield United, our intention is to build a strong and successful business that can stand alone, regardless of what happens on the football pitch. This fund-raising is another stage in that process and I look forward with confidence."
It is a long-term loan offer with potential to convert into a stake in the company, and requires shareholder approval, but could raise GBP 10 million for the club. Half of the funds raised would be invested in new commercial ventures.
Neil Warnock could get up to GBP 5 million in additional transfer funds.Warnock would be handed the remainder to strengthen the club in its battle against relegation from the Premier League.
"This fund-raising will allow us to invest further in new players for our first team," said club chairman Kevin McCabe in a statement to the stock exchange, "thereby improving our chances of remaining in the top flight, and to invest further in our off-pitch revenue streams."
An extraordinary general meeting will be held before the convertible loan notes are issued to the Scarborough Investors - a group of companies "directly or indirectly controlled by Kevin McCabe, his immediate family and/or related trusts," according to the statement.
"These continue to be exciting times for Sheffield United both on and off the pitch," added McCabe. "I have said many times before that, whilst football will always remain at the heart of Sheffield United, our intention is to build a strong and successful business that can stand alone, regardless of what happens on the football pitch. This fund-raising is another stage in that process and I look forward with confidence."
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