LONDON (CelebrityAccess MediaWire) — AEG's O2 Arena is looking to refinance their debt with a new $246 million and an infusion of cash from AEG.
According to Bloomberg, the seven-year loan would have a proposed interest rate at 450 basis points above the London interbank or LIBOR rate, which works out to 4.5%. AEG is also planning to offer an equity injection of $65.5 million to help retire some of the $300m in outstanding loans for the venue.
A person close to the negotiations told Bloomberg that Credit Suisse Group AG is managing the refinancing and lenders are invited to attend a bank meeting in London on June 16.
The O2 arena, referred to as North Greenwich Arena for the Olympics is one of the largest arenas in the world. Originally built as the Millennium Dome to host London's Millennial celebration in 2000, the venue was extensively refurbed by AEG between 2003-2007. Since re-opening, the venue has played host to events ranging from major sporting events to concerts by artists such as the Rolling stones, Led Zeppelin and Lady Gaga. – CelebrityAccess Staff Writers