Hicks and Gillett complete £350m Liverpool FC refinancing deal

Jan 25 2008 by David Bartlett, Liverpool Daily Post

LIVERPOOL Football Club's American owners have this afternoon confirmed the completion of their £350m refinancing deal and Tom Hicks gave his full "enthusiastic" backing to manager Rafael Benitez.

It follows the Daily Post's exclusive revelation that Dallas-based HKS had been chosen by co-owners Tom Hicks and George Gillett as the architects of a new 71,000-capacity stadium for Liverpool FC.

Kop Football Holdings, owned by Hicks and Gillett, have secured a £350m financing package, from the Royal Bank of Scotland and US investment bank Wachovia.

Kop Holdings said the new financing will meet all of the club's current financial needs and includes facilities to support the commencement of construction for the new stadium at Stanley Park and to provide working capital for the club and future player transfers.  

As was widely expected £105m of the debt has been place on the club and will be used to fund the start of construction of the new stadium at Stanley Park, for future player transfers, and to meet the club's working capital needs.  

The other £245 million will be placed on the holding company and was used to refinance the £60 million of debt that was on the club's books at the time of last year's acquisition.

Kop said the overall financing is being supported by a combination of owner cash, letters of credit and personal guarantees totalling £225 million.

Hicks said: "This new financing package is a strong vote of confidence in the club's financial strength and a recognition of the exceptional opportunity represented by the construction of the Club's new state-of-the-art stadium at Stanley Park.  

"The successful completion of this financing package is particularly significant in light of the currently challenging credit-market environment.  

"With the refinancing process now done, club supporters can look forward to the timely commencement of construction work on the new stadium and renew their focus on actions on the pitch." 

He also responded to fan fears that Benitez was on borrowed time since Hicks admitted to meeting Jurgen Klinsmann as a possible replacement.

"Since the meeting with Rafa on December 16th, at which some widely reported communications issues were discussed, Rafa has been assured that he has continuing and enthusiastic support as the club's manager.  

"Reflecting that support, Kop recently approved his transfer payment request to sign Martin Skrtel for £6.5 million and is in discussions with Rafa and club management regarding additional player signings this summer.  

"Rafa is under contract for two more seasons following this season.  

"I am solidly behind Rafa and am confident of the team's competitive prospects under his continuing leadership."

This morning Kop Football Holdings said the selection of HKS was based on the firm's successful development of an "improved stadium design that meets the objective of a cost-effective, supporter-friendly design". 

Hicks said: "HKS has developed a more efficient design that, at the same time, is just as stunning as its original design.

"Liverpool supporters should have high expectations for the future: a premier sporting experience at their new stadium at Stanley Park and a winning Club on the pitch for years to come."

The firm added: "The new stadium, scheduled to open in August 2011, will ensure that Liverpool Football Club and its supporters get the much-anticipated groundbreaking iconic design at a capacity of approximately 71,000 seats, significantly more than is currently available at Anfield. 

"The new stadium will feature enhanced amenities for the club's supporters while preserving the history and traditions of Anfield and the club itself. 

"It will be anchored by an expanded 18,500-seat standalone Kop, an increase of more than 5,000 seats."

New-York based KUD International have been appointed as project managers for the stadium.

The US firm has a London office but will establish a Liverpool base to oversee the scheme.

KUD has developed projects globally, including London's Silvertown Quays, a large-scale mixed use scheme, as well as collegiate and professional stadiums in the United States including the Philadelphia Eagles' Lincoln Financial Field and the San Francisco Giants' AT&T Park.

Laing O'Rourke, currently working with Grosvenor on the Liverpool One development, has also joined.