Hicks & Gillett set to secure loan refinancing

Liverpool’s American owners Tom Hicks and George Gillett look set to have secured a refinancing package with the Royal Bank of Scotland and Wachovia ahead of their current deadline of July 24th, according to a report in this morning’s Guardian.

Hicks and Gillett took out a £350million loan from the banking giants in February 2007 to purchase the club and to begin work on building a new stadium ‘“ work on which has yet to begin.

The newspaper reports that it could cost Liverpool’s holding company, Kop Football Ltd £3.5million for the arrangement fee over the new loan terms ‘œwith interest payments ‘“ approximately 4% above the banking rate ‘“ similar to the terms on the current facility’.

It is understood that despite no work on a new stadium, the banks can see an improvement in the club’s fortunes since the takeover and want to let the progress continued. The team finished second in the Premier League table last season, missing out on the title by just four points.

“Banks won’t want to jeopardise growth through ­taking control,” a source close to the situation said.

“It doesn’t make sense to take control of a business that’s performing well; this approach could be applicable to Liverpool.”

It is thought that the American tycoons must seek an extra £400million of investment to fund the club’s new stadium on Stanley Park ‘“ the idea of which was first announced 10 years ago.