Goldman Sachs, HSBC and Bank of America Merrill Lynch have provided a £400 million loan to English football club Tottenham Hotspur to fund the development of its new stadium in north London.
The three banks have provided a five-year facility for the construction of the 61,500-seat stadium, plus an associated retail store at the site. In addition to the loan, the banks have provided a £25 million revolving credit facility to the club.
The loan replaces a £200 million interim financing from the same lenders which was put in place in December 2015, of which £100 million has been drawn to date. The interim loan funded the club while relocation, planning and development conditions were completed. Tottenham Hotspur has spent more than £340 million on land acquisition, the planning process and build costs so far, financed through the original loan and club resources.
The new financing will fund the remaining costs of the project. In addition, the ENIC Group, the investment vehicle which owns the club, will also commit to a £50 million letter of credit facility to support the stadium financing and ensure the project is fully funded through the course of its build.
The facility has a term of five years, with no early repayment penalties or amortisation requirements and no material financial covenants until the stadium opens. The loan is secured against the new stadium and related commercial and match day revenues. There is no obligation to hedge under the facility and the margin ranges from Libor plus 3 percent to 2.25 percent over the term.
Rothschild & Co advised Tottenham Hotspur.