(Bloomberg) -- French Ligue 1 football club Olympique Lyonnais has reached a deal with a group of investors to refinance €320 million ($341 million) of private placement notes that will pay 5.8% interest, according to people familiar with the matter who asked not to be identified discussing private information.  

OL Groupe said in a statement on Wednesday that it had reached a preliminary agreement with a “group of leading global financial institutions” to refinance the substantial majority of its debt and that of its subsidiary Olympique Lyonnais SASU, without disclosing pricing. The deal is expected to close in the next three to four weeks, the people familiar said.

The proceeds will allow the group to repay the balance on long-term debt used to fund its stadium, government-backed loans obtained on the back of the Covid-19 pandemic, and other amounts owed to private parties, including Holnest, the family office of Jean-Michel Aulas, the former controlling shareholder of the club.

Sign up to the new Business of Sports Newsletter, bringing you the news where power and sport collide, from secret F1 investors, how NBA players spend $200 million, and crumbling football clubs.  

The notes, which have a final maturity in 2044, got an investment grade rating from KBRA Europe and DBRS Morningstar of BBB+ and BBB respectively. That’s three and two notches above a speculative-grade rating. The club was advised by Goldman Sachs in the refinancing. 

Spokespeople for Olympique Lyonnais and Goldman Sachs declined to comment. 

Lyon was taken over last year by American businessman John Textor, who also owns a 40% stake in Crystal Palace in England’s Premier League, Belgium’s RWD Molenbeek, and Botafogo in Brazil. Lyon, which ended last season in 7th position, is at the bottom of France’s top league this season. 

The group plans to move its women’s team — which won the Champions League in 2022 — into a separate company that will also house the US-based women’s football team Washington Spirit. The French club will hold 48% of the company, which will be controlled by Washington Spirit owner Michele Kang.

Separately, Textor’s investment vehicle Eagle Football Holdings LLC wants to sell a basketball arena owned by Lyon, lease it back and use the venue to host music events, one of the people said. Eagle plans to invest some proceeds from the sale in building football academies in Brazil, Dakar and Florida, Bloomberg reported earlier. 

(Updates with Olympique Lyonnais plans in last two paragraphs.)

©2023 Bloomberg L.P.