Manchester United has announced a refinancing of the club’s debt, the notes were issued by MU Finance plc, a subsidiary which houses the clubs financing. All outstanding 8.375% senior secured notes due 2017 to be redeemed with funding provided by issuance of new 3.79% senior secured notes due 2027.

The original 8.375% notes were issued as part of the clubs 2010 refinancing, in which the club refinanced approximately $675m of which the notes represented approximately $425m. The Glazers’ contentious leveraged buyout of the club layered an estimated £600m in debt onto the club in 2005, with the interest rate peaking in 2010 at 16.25% due to a default. Since then the Glazers have been able to take advantage of the loose credit environment and gradually refinance the debt to much more manageable rates.

Redemption of the old notes is contingent upon the completion of the new note issuance. The club expects the transaction to close around June 26, 2015 and reduce net interest payments by ~$10m a year.