Despite long-time public opposition and more recent financial challenges, Forest City Ratner had no problem raising $511 million, roughly half of what he needs, to finance the development of the arena at Atlantic Yards yesterday; the bond sale narrowly beat the end-of-year deadline for tax-free financing for the project. There was a strong appetite for the bonds, said Jay Abrams, a bond analyst at FMS Bonds. The market was comfortable with the ratings the deal received and the security that was pledged. Not every felt quite as sanguine, however. These bonds went on the market without any oversight from any state officials, said Daniel Goldstein, spokesman for Develop Don’t Destroy Brooklyn, the main Atlantic Yards opposition group. The state will be on the hook if the project defaults. The Brooklyn Paper had a good summary of how the rest of the financing breaks down:
- $511 million from yesterday’s tax-free bond sale
- $100 million in taxable bonds yet to be sold
- $293.4 million in equity from Mikhail Prokhorov pending NBA approval
- $156.4 million from the city
- $104.3 million from the state
$500 Million in Bonds Sold in 2 Hours for Nets’ Arena [NY Times]
Ratner Sells $511 Million in Tax-Free Bonds [NY Daily News]
Ratner’s tax-free bonds are snapped up fast [Brooklyn Paper]
Investors Grab Up Brooklyn Arena Bonds [NY1]
Junk Yard Bonds Get Trashed [Brownstoner]
Photo by Willets Point United