Baker Tilly supports FC Schalke 04 as debt advisor on further bond placement

The debt advisory team led by Partner Markus Paffenholz and Senior Manager Jan-Philipp Bülow supported the club in the timing, structure and conditioning of the new bond. The experts supported the decision-making process "pro new bond" as well as the issue on their own responsibility – i.e., without an issuing house, bank or investment bank.

An amount of € 31.6 million was raised via the new 2022/2027 bond, significantly exceeding the original target in a difficult market environment (COVID-19 pandemic, Ukraine conflict, inflationary pressure and relegation to the 2nd Bundesliga). The 2022/2027 bond will mainly be used for the early refinancing of the bond due in 2023 and will help to further increase FC Schalke 04's financial capacity to act as a cornerstone for sporting success. Furthermore, the bond has a fixed annual interest rate of 5.50%, a maturity date of July 5, 2027, and a Bundesliga bonus (one-off bonus payment of 2% if FC Schalke 04 should be promoted to the 1. Bundesliga by the 2025/2026 season) and is listed on the Regulated Unofficial Market of the Frankfurt Stock Exchange.

In 2016, FC Schalke 04 had issued two bonds at a total amount of EUR 50 million maturing in 2021 and 2023. Despite relegation to the 2nd Bundesliga, a significant portion of the amount due in 2021 was refinanced in the same year through the issue of a new bond including an exchange offer and an option to acquire additional new bonds. In order to further optimize FC Schalke 04’s maturity profile, the amount of EUR 34.1 million due in 2023 should now be refinanced prematurely (pro rata).

About FC Schalke 04

FC Schalke 04 (Fußballclub Gelsenkirchen-Schalke 04 e. V.) is a sports club founded in 1904 in the Schalke district of Gelsenkirchen. With more than 160,000 members, FC Schalke 04 is one of the three largest clubs in Germany and the five largest in the world. Its main business areas are licensed soccer, the training of young soccer players and the marketing of the multifunctional VELTINS Arena. As an attractive employer in the city and the region of Gelsenkirchen, the club has an important local image and fulfills its social responsibility with the non-profit GmbH Schalke hilft!

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