Liverpool FC To Announce Completion Of Refinance Deal

Fri, 25 Jan 2008

Liverpool FC’s American co-owners Tom Hicks and George Gillett are believed to have completed their refinancing deal that will secure their future of the football club, according to BBC reports.

The owners have reportedly finalised terms on a new £350million loan package and are expected to make a formal announcement on future plans either later today or on Monday.

The £350million loan will enable Hicks and Gillett to repay money they initially borrowed to takeover the club in March of last year and finance the signing of new players such as Fernando Torres and Ryan Babel in the summer.

The remaining £60million is expected to go towards funding the club's much-needed new stadium at Stanley Park, close to Anfield . Revised plans on the stadium are expected to be unveiled shortly.

The formal announcement on the refinancing deal will highlight the pair’s determination to continue as owners of the club, and hopefully banish rising speculation that Dubai International Capital (DIC) - the investment arm of the Dubai government - is poised to buy them out.

Fans of the club will be pleased to here that not all of the new debt will be placed on the club, as previously thought.

According to the Northern Echo, more than £160million of the £350million loan will be debt tied to Liverpool FC, while around £190million will be covered by Hicks and Gillett's guarantees.

The newspaper says the of the £160million figure, £105million will be used as a cash injection for the club, comprising £65million for new stadium costs, and a further sum of £45million of working capital, including money for buying new players.
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