Man Utd in talks to refinance its debt (go back to the homepage) Manchester United is exploring a bond issue as part of efforts to refinance its £700m ($1.1bn) debt, with the English Premier League champions in talks with two banks about how to reorganise its borrowings. JPMorgan and Deutsche Bank are advising the football club on its options. It is one of a number of clubs whose debts have alarmed football authorities in the UK and abroad. People familiar with the situation said that the options under consideration included the issue of high-yield bonds. These would be used to refinance bank debt or payment-in-kind notes - an instrument that allows borrowers to roll over cash interest payments - which helped Malcolm Glazer, the US sports franchise owner, and his family take over Man United in 2005 in a £790m leveraged buy-out. The club would be the latest company to take advantage of the recovery in bond markets to refinance debt. There is no suggestion the Glazers are looking to reduce their equity holding or that banks have formally been appointed to issue a bond. Man United and the banks declined to comment. Man United has not been able to refinance its debts since July 2006, when it redeemed £275m of payment-in-kind notes held by three hedge funds. The club, which was yesterday knocked out of the FA Cup by Leeds United, last reported accounts for the year ending June 30 2008. These showed Red Football Joint Venture, its immediate holding company, with borrowings of £699m. The loans were split between £519m of secured bank loans and £175m in payment-in-kind notes. There were £5m in other borrowings. The club made revenues of £257m in the 2007-08 season, giving it a pre-tax profit of £66m. Red Football JV made a profit before interest and taxation of £24m, but interest payments of £69m gave it an overall pre-tax loss of £45m. .Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.