Tuesday, March 2, 2010

Ticking up

If (enormous if), Red Football Ltd was sold by the Glazers, the bond holders have to be paid back straight away (at 101% of face value).  It wouldn't necessarily happen as the new owners could do a deal with the bond holders, but the right to repayment on "change of control" is embedded in the bond documents.

It is therefore interesting to look at what the bond price has done today as bid rumours swirl around....

They've gone up, by a noticeable amount:


I know 2.3% may not sound much, but in bond world it matters.

What does this prove?  Well nothing of course, but however "not for sale" United may be, the bond market appears to think the question is a little more nuanced than the club would have you believe.

PS.  You have to pay for your own coffee at Soccerex....!

LUHG