FC Porto increases bond offer to €50 million

FC Porto’s SAD is going to borrow more money from investors after all. Using the possibility opened in the prospectus of the bond issue, which is currently being subscribed, it increased the overall value by €10 million.

“It is informed that Futebol Clube do Porto – Futebol, SAD decided, by resolution of its Board of Directors on April 4, 2022, to increase the maximum number of bonds representing the bond loan called “FC Porto SAD 2022-2025” (…) for up to 10,000,000 bonds and, therefore, increase the respective global nominal value to up to €50,000,000″, says the club in an addendum to the prospectus of the operation disclosed through the CMVM.

The conditions of the public offer remain the same: the new bonds will pay a gross annual interest rate of 5.25%, have a three-year maturity and can be subscribed until Friday, April 8.

Within the scope of this loan, the portista SAD is making two offers at the same time:

• a cash subscription offer for an amount of up to €25 million;
• an exchange offer also for an amount of up to €25 million and that consists, as the name indicates, of the exchange of bonds from the previous loan that matures in 2023 and that pays 4.75% interest for these additional debt securities.

For the bond swap, each old bond will correspond to a new bond issued under this loan to which will be added a premium that SAD will pay in cash to the amount of five cents.

In addition, the club’s SAD will also pay a running interest since November 26, 2021 of about nine cents for each bond that is exchanged, according to the prospectus of the operation disclosed this Tuesday night at the Securities Market Commission (CMVM).

The change slightly increases SAD’s costs with the operation, so that “the estimated overall net revenue of the club’s SAD will be €47,939,520″.

The results will be announced on April 11 in a special session organised by Euronext, which manages the Lisbon stock exchange.