Valencia CF successfully complete restructuring and strengthening of capital structure

• The finalization of new long-term corporate financing agreements highlights the Club's strong endorsement by prominent investors in the international capital markets, reinforcing our credibility and potential for growth.

• These transactions put the club in a position to complete the financing for the Nou Mestalla Stadium Project, paving the way for construction to recommence in January 2025 and making Valencia CF´s future plans a reality.

• Valencia CF have been assisted by Bibium Capital (financial advisor) and Addleshaw Goddard (legal advisor). Goldman Sachs served as an investment banker acting as a structuring and placement agent. The creditors were represented by DLA Piper.

Valencia CF have achieved one of the most important milestones in its 105-year history: the complete transformation of its capital structure.

Over the last few months, the Club has been immersed in the design and execution of two complex and large-scale financial transactions:

• A long-term corporate facility of €121M
• A short-term bridging loan facility of €65M

With the closing of the two arrangements, Valencia CF have repaid all its existing corporate debts and the restructuring has substantially improved its capital structure, providing it with sufficient liquidity, solvency and financial depth for the coming years. These deals also align the Club with the largest companies and with other leading professional football entities, allowing it to cover its funding needs, improve its financial health and face its strategic plans with full strength.

New Corporate Indebtedness (€121M)

The new corporate debt facility of €121M, has been raised in the capital markets, specifically in the United States Private Placement (USPP), made up of prominent professional investors (mainly top-tier insurance companies and pension funds).

This transaction is one of the most important in quantitative and qualitative terms ever carried out by a Spanish or European professional football club.

The senior secured debt placement has been arranged under attractive market terms and conditions related to the collateral package, maturity, grace period, weighted average life, and underlying cost. These terms offer significant improvements across the board compared to those previously in place, which have been fully canceled. Additionally, the covenants associated with the new financing provide flexibility and autonomy for the Club's future management, even permitting the extension of the debt if necessary and gradually reducing the impact of repayment.

Bridge Loan (€65M)

Additionally, Valencia CF have raised €65M in short-term bridge financing with Goldman Sachs acting directly as the creditor, which will allow the Club to advance and accelerate its strategic roadmap. The bridge loan facility will be subsequently refinanced by the Nou Mestalla Stadium Project financing, which is currently in progress and is expected to be completed in a few months.

With the above funding secured, Valencia CF have completely refinanced its previous indebtedness and has obtained the additional flexibility and capacity to meet its working capital needs.

Club President, Layhoon Chan said: “The completion of the debt restructuring exercise marks a milestone in our journey, one that many of us have worked tirelessly to reach. The successful completion of the corporate financing agreement, alongside the bridging loan, has strengthened our financial position. This allows us to confidently move forward with the financing for the Nou Mestalla Stadium Project. The new stadium project represents our commitment to growth, to innovation, and to the vision that will be propelling us forward.”

To accomplish such an important milestone, Valencia CF have been advised by Bibium Capital (financial advisor), Addleshaw Goddard (legal advisor), and investment bank Goldman Sachs. The latter is also acting as a structuring agent for the upcoming financing of the Nou Mestalla Stadium Project which reaffirms Goldman Sachs’s commitment and confidence in the Club. LALIGA has also actively supported the Club throughout the entire process. DLA Piper has been the legal advisor of the creditors.