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Ashursts nets ground breaking Tottenham Hotspur bond deal

Ashurst Morris Crisp, the leading international law firm, today closed a £75 million (EUR107 million) bond deal for Tottenham Hotspur Football Club. This is the largest ever privately placed bond issue taken place by a football club in Europe. Ashurst Morris Crisp advised Lazard (the arrangers) and the un-named UK institutional investors.

The facility provides for up to £75 million bonds over a four-year period to fund long term capital projects. £10 million has been made available to replace existing short-term borrowings and the remaining £65m will be used for a proposed new football academy and first team facility at Abridge in Essex and a potential stadium development. The deal contained several key features, including a committed facility that allows the club to issue bonds only when it needs the money, allowing the club to match its borrowing requirements with different stages of project development.

The Ashursts’ team was led by structured finance lawyer Stuart Brinkworth and included partner Michael Smith (assisted by Katherine Hitchins) and property advice from partner Gerald Kelly (assisted by Matthew Hooton). The Lazard team comprised David Reitman and Graham Stark.

Stuart Brinkworth, structured finance lawyer at Ashursts’ commented:
"This is the biggest and by far the most innovative and complex bond issue of its type to be undertaken by a football club. This is due to the flexibility that has been given to the club by the investors and the different projects being financed. The deal demonstrates the growing sophistication not only of the football finance market, but of football clubs themselves. The club and Lazard have taken the time to tailor this deal to the club’s specific needs and its long-term business plan and in doing they have taken this type of transaction to a whole new level."

David Reitman of Lazard commented:
“We are delighted to have completed this ground breaking transaction which provides Tottenham Hotspur with both committed and flexible long term financing.”

Tottenham Hotspur was advised by DLA (Andrew Price and Graham Hall).

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