Tom Hicks and George Gillett’s £350m loan hope

Jan 24 2008 by David Bartlett, Liverpool Daily Post

LIVERPOOL FC co-owners Tom Hicks and George Gillett could announce the completion of a £350m refinancing deal with Royal Bank of Scotland and American investment bank Wachovia as early as today.

Sources said revised plans for a new Anfield stadium will be revealed at the same time as the financing package in a bumper announcement that the Americans hope to use to signal their continuing commitment to the club.

It is thought any deal will be unveiled by Monday at the latest.

The Daily Post understands that Dubai International Capital (DIC) are still keen to buy Liverpool but they will not pay over the odds and will probably “cool” their interest should the refinancing go through.

The refinancing deal is not expected not see the full debt loaded on to the club, as many fans had feared.

A source said: “The refinancing deal is going through. It could go through today, Friday or Monday.”

The source said £105m will be put on the club’s books - £60m for the stadium project, and £45m for working capital which has helped finance the purchase of players.

This is seen as an entirely legitimate way to operate as those costs were associated with the running of Liverpool FC.

The terms of the agreement are also expected to see Hicks and Gillett putting in some of their own money - around £40m - supported by personal guarantees and letters of credit.

The debt could be paid off personally by Hicks and Gillett with the club paying the pair dividends each year.

The Daily Post understands that Hicks and Gillett had been initially keen to put the full £350m on LFC.

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It is believed chief executive Rick Parry and former chairman David Moores argued against this, believing it would have been a breach of their promise when they bought the club.

A Daily Post survey of 2,500 fans yesterday revealed that more were concerned about keeping debt on the club to a minimum than funding transfers. Once the refinanc- ing is sorted, Hicks and Gil- lett face finding more money for the new stadium.

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