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Old 11-02-2009, 06:37 PM
Tumescent Throb
 
Question The Debt

Can someone pinpoint any obvious changes in the money markets and finance sectors that are probably affecting the Glazer's position right now for me please?

someone who knows what they're on about, obviously.

please don't mention Leeds. ta.
 
Old 11-02-2009, 07:47 PM
armchair
 
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Quote:
Originally Posted by Tumescent Throb
Can someone pinpoint any obvious changes in the money markets and finance sectors that are probably affecting the Glazer's position right now for me please?

someone who knows what they're on about, obviously.

please don't mention Leeds. ta.
Like who? A financial adviser, a banker?
 
Old 11-02-2009, 07:49 PM
Tumescent Throb
 
Default

Quote:
Originally Posted by armchair
Like who? A financial adviser, a banker?
leader of the opposition seems to think he's clever. does he get on here?
 
Old 11-02-2009, 07:52 PM
armchair
 
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I believe basically what happened was a couple of vampires bought a golden cow for some magic beans.
 
Old 11-02-2009, 08:07 PM
Tumescent Throb
 
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i'm fairly well up with what happened in 2005 tbf


i'd like to know best guess speculation about where we're at in 2009
 
Old 11-02-2009, 08:08 PM
Bunker Buster
 
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I've never managed to read a post or article that actually explained it in a way i understood.

it must have effected it somehow, but i don't even understand why my mortgage has come down...I just go with the flow and follow the crowds...
 
Old 11-02-2009, 08:12 PM
armchair
 
Default

Quote:
Originally Posted by Tumescent Throb
i'm fairly well up with what happened in 2005 tbf


i'd like to know best guess speculation about where we're at in 2009
top of the league, english, euro, and world champs

beanless
 
Old 11-02-2009, 08:36 PM
IsaacHunt
 
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As I recall, the loans were in three parts, two were conventional loans, something like 200M at 7% (costing 14M a year) and another 200M around 9% (18M a year). Again I think they were fixed - the Glazers were looking to re-finance about 18 months ago, but gave up as the deals they have couldn't be beaten.

The last loan is a payment in kind note, so they don't pay anything back in capitol or interest until they repay it. The downer is that the PIK note was somethign like 20% interest on 200M - so effectively adding 40M a year to how much needs to be paid back.

They say that the interest payments of 32M-ish a year are no higher than the share dividends that the PLC used to pay. They don't mention the huge liability of the PIK though.

The issue in getting more / different money is odd - even though the interest rates are lower, the cost of borrowing fresh money is still as high as it was 5 years ago (if not higher). Just like a car loan or mortgage - the banks want a far higher profit on top of the cost of the money. e.g. my tracker mortgage was 'bought' 4 years ago at 0.19% above the bank of England rate, but the bank actually borrow at the LIBOR (inter-bank rate) which isn't actually the same as the BoE rate, it's historically been just a tiny bit higher. Now the BoE rate is just 1%, but the LIBOR is 4-5%, so if you want a tracker mortgage now, it will be offered at 3.5% above the BoE rate or they might even state the LIBOR instead to cover themselves.

So in simple terms, the cost of borrowing 'new' money is the same now as it was 5 years ago.

Last edited by IsaacHunt; 11-02-2009 at 08:42 PM.
 
Old 11-02-2009, 08:39 PM
Smeggs
 
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Quote:
Originally Posted by Bunker Buster
I've never managed to read a post or article that actually explained it in a way i understood.

it must have effected it somehow, but i don't even understand why my mortgage has come down...I just go with the flow and follow the crowds...
just to clear one thing up for you pal, your mortgage went down cos your bank/BS reduced thier standard variable rate i imagine though not to the level the government would like...Interest rates are 1% at the mo and i imagine your standard variable rate is about 4 and a bit%?

not sure about the glazer debt, income projections see em covering the interest quite easily i think, who is the loan from? i did read it all at the time but have forgotten.
 
Old 11-02-2009, 08:41 PM
Smeggs
 
Default

Quote:
Originally Posted by IsaacHunt
As I recall, the loans were in three parts, two were conventional loans, something like 200M at 7% (costing 14M a year) and another 200M around 9% (18M a year). Again I think they were fixed - the Glazers were looking to re-finance about 18 months ago, but gave up as the deals they have couldn't be beaten.

The last loan is a payment in kind note, so they don't pay anything back in capitol or interest until they repay it. The downer is that the PIK note was somethign like 20% interest on 200M - so effectively adding 40M a year to how much needs to be paid back.

They say that the interest payments of 32M-ish a year are no higher than the share dividends that the PLC used to pay. They don't mention the huge liability of the PIK though.
Cheers for the info mate. Think the plan is never to actually pay that back themselves but to sell when the time is right. Afterall it is the club in debt not them.
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