Investors Eat Up Atlantic Yards Arena Bonds
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…
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
So here’s a question for the board (which I’ve asked several times, but nobody has really ever responded to). Are people in Brooklyn interested in having a sports team?
In other words, IF the Nets comes to Brooklyn, will people go to the games?
Notwithstanding the disaster that the Nets are on the court right now (2-22 and counting), let’s assume for the sake of argument that the team itself is “decent” (a fair assumption based upon the young talent on the squad -Brook Lopez, Devon Harris-, the most salary cap space that any NBA team has had in 10 years to go after the best free agent class ever – LeBron James, Dwayne Wade, Carmelo Anthony, Chris Bosch, Amare Stoudemire- and probably the number one draft pick next year), do you guys think that Brooklynites will suppport this team? I’m just curious as to the opinions around here.
30 Yr treasuries are “risk free”, these are far from that!!!!
Exactly, and despite the risk they sold well at a decent rate – inch by inch, closer, closer….
these are practically risk free. i mean it’s a slam dunk.
[sorry]
30 Yr treasuries are “risk free”, these are far from that!!!!
A great day for Russian billionaires and second rate developers. Less so for New York taxpayers.
Posted by: Johnny at December 16, 2009 9:17 AM
I agree.
he now has as much russian skin as he can handle…
I think the Brooklyn Paper indicates that $293.4 in equity is from Prokhorov and Ratner, not just the Prokhorov…how much skin does Ratner have in?
Better yield than 30yr Treasuries though.
A great day for Russian billionaires and second rate developers. Less so for New York taxpayers.