PrestonSaint wrote:
I think we can call it a contribution more than a loan. A quick bit of google research pulls up that the company Mike Coleman runs with his business partner Doug King is currently controlling $2.3Billon worth of assets. Somebody that runs a company that size surely must have a substanstial amount to blow for pleasure purposes.
I don't think he has blown it at all. He is a fantastic saints fan but he hasn't donated £6M for no return. He has a loan which is likely to be very favourable to Saints but it will not be interest free. He also has a £3M bond which will have a coupon/interest rate - again probably very low but he has the option at some stage to convert this into shares.
In 2010, as a measure of their commitment to Saints some £725K of directors loans were converted to shares at a value of £15.15 per share and assuming the most recent £850K loan was converted at the same rate this would mean 56,105 new shares with the balance to share premium, giving a current share capital of 331,938.
If Mike Coleman is able to convert at the same conversion rate is he could end up the proud owner of an additional 198,000 shares to go with 4950 shares he is getting from his part in the directors' loan conversions. If this is the scenario he is on tract to own around 38.3% which given his commitment he would fully deserve!
The other good thing would be that as the biggest shareholder (Mac and family would be diluted to around 15% of the club) Mike Coleman unlikely to want to call in his £3M loan as would owe it largely to himself.
I would also like to make the point that we should also thank the other directors who converted their loans to shares;
Fergus Lyons, Andrew Bell and Kevin Marren. 
One other thing is the questions earlier in this thread about whether this new debt is additional or replacement, the answer appears to be without much doubt that it is replacing existing debt. This is shown as £850K of directors debt is being converted into shares and Mac's statement that there will be NO bank debt. The ONLY other debt is the remains of an old brewery loan of only £8K.
It does transform our balance sheet as will the stadium asset. This fantastic gesture by Mike Coleman and his fellow directors gives the club real stability which few if any other clubs have.
It s now up to Saints fans everywhere to repay this vote of confidence by buying season tickets where they can and for those who can't coming ot as many home games as possible.
COYS !!!
