After the signing a few days ago, new details continue to come out regarding the purchase of Milan by RedBird Capital including the structure.
According to Il Sole 24 Ore (via MilanNews), Gerry Cardinale and his collaborators are in fact still raising funds and looking for capital, but it is almost certain that they will succeed because they have already received financial commitments from co-investors.
RedBird have already raised about €600m but they are close to raising another €300m, therefore a total of €900m, which pays for three quarters of the €1.2bn sale price. That means there will be a vendor loan from Elliott Management to RedBird for €300m.
Initially it was thought that this vendor loan would amount to €600m, but Cardinale has found another €300m so now the Singer fund will have to put only half of the previously imagined amount forward, at a 7% interest rate with an additional 8% ‘Payment in Kind’ rate, payable on maturity.
