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By ESPN Staff

New loan to save Utd £10m a year

Manchester United have cut their interest bill by £10million a year after a major refinancing through Bank of America.

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United have refinanced £177.78million of outstanding sterling bonds, on which they are currently paying a rate of 8.75%.

In addition they have refinanced approximately £17million of dollar bonds on which they are currently paying 8.375%.

Through the new loan with Bank of America, the club is estimated to save approximately £10million per year.

United's current debt is £370million following the 2005 takeover by the Glazer family.

But due to a staggering rise in the club's commercial income, United are expected to hand new manager David Moyes the funds needed to keep the Red Devils competitive against their rivals.

Information from the Press Association was used in this report.

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