Municipal bond buyer on arena bonds: "there’s definitely demand" but "a lot of analysis" is required
A Bloomberg News article about the planned sale of $500 million in tax-exempt bonds for the Barclays Center arena suggests the interest rate would be 7%, the same as the interest rate for the second (and much smaller) phase of Yankee Stadium bonds and slightly above the 6.45% interest rate for the second phase of Mets stadium bonds.
(By contrast, the main bonds for both stadiums were sold in 2006 at interest rates of 4.57% and 4.7%.)
From the article, two excerpts, not without tension:
(By contrast, the main bonds for both stadiums were sold in 2006 at interest rates of 4.57% and 4.7%.)
From the article, two excerpts, not without tension:
“If it’s structured right and priced right, there’s definitely demand,” said Dan Solender, who oversees about $12.5 billion as director of municipal bond management at Lord Abbett & Co. in Jersey City, New Jersey. “I think we saw that with the deal down in Texas.”Here's Michael D.D. White's critique, sent to the state Attorney General and Comptroller.
...The pending deal has required “a lot of analysis” by potential investors, Solender said.
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