(Bloomberg) — The parent company of FC Internazionale Milano SpA has drawn around €195 million ($206 million) under a credit facility from Oaktree Capital Management to fund the money-losing football club.
That’s up from the €107 million drawn as of February, and leaves about €80 million still available under the facility, Inter Media and Communication Spa, which houses the media and sponsorship rights of the Milan-based team, said in a call with investors on Friday. The €275 million loan was originally extended to Grand Tower Sarl, an entity through which Suning International controls the majority of Inter Milan’s shares, in May 2021.
In addition, Grand Tower Sarl provided the club with new loans totaling €51 million and converted €86 million of existing credit lines into equity between January and October, according to Inter Media’s results, released earlier this week. The financial support has provided breathing room for a club saddled with losses in recent years. New sponsorship contracts, prize money and a cap on player spending have also helped staunch the bleeding. For the fiscal year ending in June, losses €55 million, versus €85 million the previous year, the results showed.
The Oaktree loan, which is secured by Suning’s equity stake in Inter Milan, matures in May. Inter has been considering various financing options as the deadline approaches, including a rumored sale.
“The parent company has supplied evidence it has the funds to support the operating companies,” Andrea Accinelli, chief financial officer of Inter Media, said in the call with investors. “What matters to us is that the shareholder has always supported and will continue to support the companies.”
Earlier this week, Inter Media was removed from a watchlist for potential downgrades by S&P Global Ratings, which confirmed its rating at B, five levels below investment grade. Recent sponsorship contracts signed by the club and a successful sporting season reduced the risk of a material drop in cashflow, S&P noted.
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