The AC Milan logo is pictured on a pennant in a soccer store in downtown Milan, Italy April 29, 2015.  REUTERS/Stefano Rellandini/File Photo Picture Supplied by Action Images

MILAN (Reuters) - U.S. hedge fund Elliott Management will inject 120 million euros ($141 million) into the coffers of Italian soccer club AC Milan to reimburse two bonds, a source said on Tuesday. 

The payment will essentially cancel the club’s financial debt and further stabilize its balance sheet, the source added. 

Elliott, which took over the Serie A team in July, had previously lent the club 128 million euros, underwriting two bonds with average interest rates of around 10 percent. 

($1 = 0.8490 euros)