Second division Hertha BSC does not have to repay a bond of 40 million euros this year. The creditors agreed to a two-year extension to November 2025.
Hertha BSC does not have to repay a bond of 40 million euros this year. As the Bundesliga relegated announced on Monday, the creditors agreed to an extension of the deadline by two years until November 2025. That brings air for the second division season.
Hertha had the creditors on June 14th offered an improved interest rate: Specifically, an increase from 8.5 to 10.5 percent, which will now take effect with the approval from August 8th. It was already the second improvement of the offer. The interest rate was originally 6.5 percent. This means that the club will have more room for maneuver in the coming season, but there will be additional costs in the tens of millions up to the payment date.
Essential building block for second division license
“We are very pleased that we have reached the quorum required to approve the extension of the bond. This gives us planning security and helps to stabilize Hertha BSC’s financial situation in the coming season. Our big thanks go to all investors who have agreed,” explained Managing Director Thomas E. Herrich.
Deferment is considered an essential building block for the license granted by the German Football League (DFL) for the upcoming second division season. If the necessary two-thirds majority had not been reached by Monday afternoon at 3 p.m., Hertha would have had to offer other – probably more expensive – securities, such as a bank guarantee for a million-euro loan.
The new investor 777 Partners was considered a potential guarantor for this. Neither the American company nor Hertha or the DFL had publicly commented on the details of the licensing.
