FC Porto SAD’s explanations about debt restructuring do not convince CMVM

The explanations given by FC Porto’s SAD about the restructuring of its debt and a capital injection have not yet convinced the Securities Market Commission (CMVM), which has kept the sports company’s shares suspended since Tuesday morning, 2 Of april.

This decision by the regulator came after the interview given by the president of FC Porto, Jorge Nuno Pinto da Costa, to the television station “SIC”, on Monday night, in which he revealed that in June the club will receive 70 million euros of the business of naming of the Estádio do Dragão.

Pinto da Costa also addressed the connection with Quadrantis, ensuring that the club is not hostage to this investment fund.

“Of course. It’s an absurd. FC Porto needs a loan, it benefits from the interest payments it is paying and am I going to be suspicious of whoever helps me? If the fund wants to lend more money, there is no shortage of people,” he said. “I don’t know if it was Quadrantis or not. But that’s up to Quadrantis or anyone. Portuguese banks closed the tap to FC Porto, but we work with foreigners”, he said.

The following day, at 9:25 am, the CMVM suspended trading in FC Porto SAD securities on Euronext Lisbon, “awaiting the release of relevant information to the market”.

An hour after the suspension of securities trading, SAD released a statement, “following an interview with its president”, stating that “it hopes to definitively close the contract with a reputable international company, with recognized experience in optimizing commercial revenues related to with large sports equipment, until June 30, 2024”, which will result in the realization of a “minority stake in one of the companies with the commercial rights of the FC Porto Group, through the injection of capital for an estimated amount between 60 and 70 million of euros, as previously communicated to the market”.

Thus, FC Porto SAD’s equity will be increased by the same amount.

It also added that it is in negotiations to reformulate its medium and long-term debt in a value of 250 million euros “at a competitive interest rate in market terms”.

Even so, trading in FC Porto SAD securities continued without being resumed until the end of the market session.

When they were suspended, the shares were priced at 1.15 euros and had not been traded since March 27th.

At the end of Tuesday afternoon, FC Porto’s SAD sent a new statement to the regulator revealing which provides that the signing of the contract with the company international event will be held during the month of April, so this will be recorded immediately and for a global value of between 60 and 70 million euros in the SAD accounts, even if payment may not be completed in full at the time of signature.

“The aforementioned partnership will be embodied in minority participation, of up to 30%, in a new company whose purpose will be the exploitation of commercial revenues directly related with Estádio do Dragão, the most relevant being the Corporate Hospitalityticketing, Naming of the stadium and others still under negotiation”, can be read in the document.

Regarding possible new financing, SAD dos ‘dragons’ indicates that, in the face of permanent market consultation, in search of better financial conditions, SAD is still in the negotiation, so “you cannot specify details of the operation, such as interest rates and/or associated counterparts. On this date, the closing of this deal is not guaranteed.”