Raimondo: RedBird vendor loan repayment to Elliott will hit €700m – the figures

The amount that RedBird Capital will have to repay when the vendor loan from Elliott Management expires has been confirmed by a report from Felice Raimondo. 

As a reminder, in order to purchase the club RedBird chose to use a vendor loan, essentially deferring the payment for the full valuation of the club until 31 August 2025, but there is an interest rate attached.

Cardinale at the time certified the methods with which he purchased Milan from the Elliott fund: “The reality is that the RedBird ownership controls 100% of Milan: it has put in 600 million of capital and controls 100% of that capital.

“I believed that continuity with Elliott was a virtue and therefore I preferred a pure financing from them, without shares in the capital, for 550 million at a very interesting interest rate, which I will pay in three years.”

Felice Raimondo on his website has taken a look at the documents published in the financial statements of Rossoneri Sport Investmente Luxembourg: “As of 31 August 2022, the Company has entered into a financing agreement with ACM BIDCO BV for an amount of €560,000,000.00.

“The loan bears interest at a rate of 8% and expires on the 3rd anniversary of the closing date. On 21 October 2022, the Company received the amount of €10,000,000.00 as a partial reimbursement.

“On 27 January 2023, following an assignment agreement with Project Redblack S.à rl, the Company transferred to Project Redblack S.à rl 95.73% (equal to €526,515,000.00) of its right and title to the financed loan as a payment in kind.”