CHICAGO — The Illinois Sports Facilities Authority said its recent $291 million refunding generated more than 5.47% of net present value savings worth $16 million to ease its debt service burden going forward.
The deal refunded portions of the authority's bond sales in 2001, 2003 and 2008 that originally provided financing for the reconstruction of the National Football League's Chicago Bears' home, Soldier Field, and construction of the Chicago White Sox' baseball park, U.S. Cellular Field.
The authority said the savings would be "realized throughout the life of the bonds and enhance the authority's financial flexibility." The fixed-rate bonds paid yields ranging from 0.57% to 4.17% and the transaction achieved an all-in total interest cost of 4.54%.
The bonds carried an appropriation pledge from Illinois.
Ahead of the sale, Fitch Ratings affirmed the state tax-supported bonds' BBB-plus rating and negative outlook. Standard & Poor's affirmed the bonds A rating and stable outlook. The bonds offered an exemption to both state and federal income taxes, unlike most from Illinois which offer only a federal tax-exemption.
The authority's primary revenue stream, which goes to repay the state advance comes from city hotel taxes, which can be volatile. The agency has been under pressure from Mayor Rahm Emmanuel to reduce the chances it will have to tap a Chicago income tax backstop to cover debt service on its Soldier Field renovation bonds as the authority did in 2011 when $185,000 was needed.
