Manchester United take out £140million loan in summer transfer hint

Manchester United have taken out a £140million loan that could finance moves for new players for Ole Gunnar Solskjaer

Manchester United have taken out a £140m loan that could be utilised to land new acquisitions for Ole Gunnar Solskjaer's side when the transfer window reopens.

Football has been hit heavily by the financial crisis caused by the coronavirus pandemic and United's latest financial results, released last Thursday, showed a drop in broadcasting, matchday and retail revenue, as well as a sharp rise in the club's net debt to £429.1million.

Experts have warned fans they may not be able to attend matches until a vaccine for the virus has been distributed.

As such, United and other clubs across the Premier League and EFL will see their revenue streams impacted significantly for the remainder of the year.

United, therefore, have drawn £140m of their £150m syndicated revolving credit facility (RCF) in a hint they could be preparing to spend big in the transfer market. The MEN understands United intend to press ahead with their plans to sign three players this summer.

The club said it precautionarily drew funds from the RCF to increase its cash position, preserve financial flexibility and maintain liquidity during the crisis.

The secured RCF, which matures in April 2025, pays a margin ranging from 125bp to 175bp over Libor/Euribor, depending on leverage. Bank of America is facility agent and security trustee on the revolver.

Historically the RCF has been undrawn during the summer transfer window, but if the club looked to buy players with values substantially more than the players being sold, it could use cash from the facility to meet its needs.

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Despite the virus and the suspension of the Premier League, United are targeting a number of additions before the start of the 2020/21 season with their prime target being Borussia Dortmund winger Jadon Sancho.

A fee for the 20-year-old could exceed the club record £89.3m paid for Paul Pogba in August 2016, with Dortmund having a hefty asking price on the England international.

United are also interested in signing Aston Villa captain Jack Grealish and Birmingham City teenager Jude Bellingham.