Now we are part of the Textor Eagle Bidco empire…I’ve been thinking how it may impact us.
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I work in private debt & Ares are one of the largest debt funds in the market.
As part of this deal, Eagle Bidco will now have significant leveraged debt which needs servicing ahead of player investment (a bit like the high yield bonds the glazers put in when they acquired United). There will also be covenants in place which means if the earnings of the empire drop, Ares will be able to enforce and take control of Textor’s share of Crystal Palace.
If this happens, it will mean you have a significant shareholder onboard whose only interest is to recover their principal (ie will force the sale of valuable assets - players!)
So, whilst being part of this project is good if everything goes well, it significantly increases the risk if things don’t.
Having debt in place as well may also mean restrictions when it comes to spending money on developing the stadium etc (unless they raised additional Capital for this as part of the deal.
Any views?
To view the link you have to Register or Login
I work in private debt & Ares are one of the largest debt funds in the market.
As part of this deal, Eagle Bidco will now have significant leveraged debt which needs servicing ahead of player investment (a bit like the high yield bonds the glazers put in when they acquired United). There will also be covenants in place which means if the earnings of the empire drop, Ares will be able to enforce and take control of Textor’s share of Crystal Palace.
If this happens, it will mean you have a significant shareholder onboard whose only interest is to recover their principal (ie will force the sale of valuable assets - players!)
So, whilst being part of this project is good if everything goes well, it significantly increases the risk if things don’t.
Having debt in place as well may also mean restrictions when it comes to spending money on developing the stadium etc (unless they raised additional Capital for this as part of the deal.
Any views?
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