Manchester United have agreed a new refinancing arrangement with Bank of America that will save the club £10m-a-year on their interest bill, according to ESPN.

The new loan with Bank of America refinances £177.78m of outstanding sterling bonds, and £17m of dollar bonds.

United were paying 8.75 per cent interest on the sterling bonds and 8.375 per cent on the dollar bonds.

And the new agreement will slash United's interest bill by around £10m-a-year. But the club's current debt still stands at a mammoth £370m following the Glazer takeover in 2005.

The report claims the saving will add to David Moyes' transfer budget for the summer, with the new boss already expected to be handed a bumper war-chest following United's impressive commercial revenue figures.

The Premier League champions have been linked with a whole host of players since it emerged that the Everton boss would succeed Sir Alex Ferguson in the Old Trafford hot-seat.

It could be a busy summer at the club then, with a new central midfielder thought to be a priority, especially considering the retirement of Paul Scholes.

There was more good news for the club this week as it was announced that Rio Ferdinand had agreed a new one-year contract to extend his association with United into a 14th year.

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