The Friedkin Group reaches agreement to buy Everton

[allen]

Am I right in reading the docs this afternoon, that we borrowed £200 mill from 777, only have to repay £66 mill, while they (presumably ACAP) can get 10% equity in a few years time, via a meagere dividend until then!

That's how I read it, but I'm nowhere near an expert.

So minus the £66 million, it looks like £134 million 'borrowed' on a minimal interest rate remaining.

If that's converted to 10% equity, and it represented fair value, that would value Everton at £1.34 billion in 7 years time.

Which presently seems like way over the odds, and would mean we're effectively paying back significantly less than the £200 million.

 

[Neiler]

Almost @Neiler it's £66 million plus notes to unspecified amount of shares in 2031 but which give a "small" annual dividend, but clearly < £200 million up front in real cash terms

plus warrants for 10% Shares at a certain date

So it's basically less cash up front, but with a potential pay out to either ACAP or Leadenhall if Friedkin Group are successful in raising share value between now and 2031

It seems TFG are intent on keeping capital in the business. ACAP may get a pay off if Friedkin Group/Everton are successful in next 7 years

I’m his biggest critic on here, but Moshiri has played a blinder here if true, that’s a stunning deal.

 

[Damo_1878]

I’m his biggest critic on here, but Moshiri has played a blinder here if true, that’s a stunning deal.

It's not Moshiri mate. It's TFG

TFG are as part of the acquisition restructuring the debts

Moshiri is basically giving up the club as can't or won't cover the liabilities. (Moshiri is nothing to do with any of this)

What this means is that ACAP or Leadenhall continue to be minority and silent investors.

It gives the club time without bleeding out, as we have been due to the R&MF loan etc

My impartial view is that TFG are doing many right things. It's making the club sustainable again without allowing external parties to hold us to ransom.

 

[Daytripper]

“Give them a chance”

 

[jazzy]

That's how I read it, but I'm nowhere near an expert.

So minus the £66 million, it looks like £134 million 'borrowed' on a minimal interest rate remaining.

If that's converted to 10% equity, and it represented fair value, that would value Everton at £1.34 billion in 7 years time.

Which presently seems like way over the odds, and would mean we're effectively paying back significantly less than the £200 million.

I’m his biggest critic on here, but Moshiri has played a blinder here if true, that’s a stunning deal.

But still subject to ratification by the NY court in the Leadenhall litigation?

 

[Neiler]

It's not Moshiri mate. It's TFG

TFG are as part of the acquisition restructuring the debts

Moshiri is basically giving up the club as can't or won't cover the liabilities. (Moshiri is nothing to do with any of this)

What this means is that ACAP or Leadenhall continue to be minority and silent investors.

It gives the club time without bleeding out, as we have been due to the R&MF loan etc

My impartial view is that TFG are doing many right things. It's making the club sustainable again without allowing external parties to hold us to ransom.

So unless i have this all wrong, what Paul Brown is reporting that the initial deal between Moshiri and 777 that in exchange for £200 mill, Everton would repay £66 mill in cash. That balance would be repayed in preferred equity - but not for a period of 7 years via a dividend in the interim. This meant there was no immediate dilution of Moshiri shareholding or voting rights. 777 also have warrants convertible to 10% of shares - apparently an injection of cash is required to activate that - which 777 wont do because they dont exist. As far as i can ascertain that was agreed with Moshiri.

Where TFG come in - is even with those favourable terms they have reached a settlement agreement with ACAP - you'd assume an even more favourable one.

 

[pfim]

That's how I read it, but I'm nowhere near an expert.

So minus the £66 million, it looks like £134 million 'borrowed' on a minimal interest rate remaining.

If that's converted to 10% equity, and it represented fair value, that would value Everton at £1.34 billion in 7 years time.

Which presently seems like way over the odds, and would mean we're effectively paying back significantly less than the £200 million.

If the numbers are correct, it actually implies a value of 1.34 billion now (134 million in today's currency). So yes, either way you look at it, they're taking a haircut.

 

[brieverton]

Would the deal between Moshiri and 777 still have legal standing contractually?

If so, it would seem to suggest that it represents a ceiling on what TFG have to pay and then they offer less to a desperate ACap.

On the other side Leadenhall see a cash rich buyer for Everton and are thinking the lions share of the money owed by the club is recoverable?

It makes more sense by the day why TFG walked away in July and came back.

 

[MikeH72]

Moshiri was a Richard Masters “yes” away from selling us to those clowns by the way. He held on for 9 months to force it through, granted them exclusivity to stop any other potential buyers getting involved.

Blinder.

 

[matty1878]

Would the deal between Moshiri and 777 still have legal standing contractually?

If so, it would seem to suggest that it represents a ceiling on what TFG have to pay and then they offer less to a desperate ACap.

On the other side Leadenhall see a cash rich buyer for Everton and are thinking the lions share of the money owed by the club is recoverable?

It makes more sense by the day why TFG walked away in July and came back.

im not football math guy

but i thought TFG came back as they didn’t want textor to own something they could?

 

[Damo_1878]

So unless i have this all wrong, what Paul Brown is reporting that the initial deal between Moshiri and 777 ACAP that in exchange for £200 mill, Everton would repay £66 mill in cash. That balance would be repayed in preferred equity - but not for a period of 7 years via a dividend in the interim. This meant there was no immediate dilution of TFG Moshiri shareholding (post acquisition) or voting rights. 777 ACAP also have warrants convertible to 10% of shares - apparently an injection of cash is required to activate that OR a conversion of loans to said equity - which 777 ACAP wont do because they dont exist. or at this time have the capital, or inclination. As far as i can ascertain that was agreed with Moshiri.

Where TFG come in - is even with those favourable terms they have reached a settlement agreement with ACAP - you'd assume an even more favourable one.

No @Neiler, none of this is to do with Moshiri or 777. It is all to do with what happens - post TFG acquisition.

It has all been agreed by TFG. None of it happens until TFG take acquisition.

The Moshiri and 777 initial deal is superseded by the TFG-ACAP proposed deal

777 have essentially ceased to exist. The Genoa president has said 777 Partners are in the process of being "wound up", their assets have been seized and absorbed by ACAP.

You're almost right but it is all TFG and ACAP.

 

[pfim]

I’m his biggest critic on here, but Moshiri has played a blinder here if true, that’s a stunning deal.

TFG agreed to the deal, not Moshiri.

 

[Neiler]

No @Neiler, none of this is to do with Moshiri or 777. It is all to do with what happens - post TFG acquisition.

It has all been agreed by TFG. None of it happens until TFG take acquisition.

The Moshiri and 777 initial deal is superseded by the TFG-ACAP proposed deal

777 have essentially ceased to exist. The Genoa president has said 777 Partners are in the process of being "wound up", their assets have been seized and absorbed by ACAP.

You're almost right but it is all TFG and ACAP.

Citizen of Suburbia seems to be reading it similar mate!

 

[Exeter_Gently]

Moshiri was a Richard Masters “yes” away from selling us to those clowns by the way. He held on for 9 months to force it through, granted them exclusivity to stop any other potential buyers getting involved.

Blinder.

Yeah it's fair to say he's slowed the process right down.

Let not make out he's was doing to for Everton's sake.

 

[Infernus]

Simply can't wait until this sorry chapter is all done with and we have actual business people running the club. The sense of relief amongst the fans will be palpable. Carnival atmosphere at the first home game after the takeover I reckon.