CHICAGO - Morgan Stanley will be lead investment banker for the Wisconsin Center District board as it crafts a borrowing plan for the new Milwaukee Bucks arena.
The district's board approved an initial legal, advisory, and banking team at its first meeting on Friday.
The board, revamped under the Milwaukee Sports Arena legislative package that provides $250 million in public financing for the National Basketball Association team, will issue about $200 million of debt. The city is providing the remaining piece of the public's contribution.
Wisconsin Department of Administration Secretary Scott Neitzel leads the board, which approved Neitzel's recommendation that Morgan Stanley serve in the role of lead investment banker on negotiations and in crafting a finance plan.
Robert W. Baird & Co. was chosen to be financial advisor. The legal team includes Husch Blackwell in the role of legal counsel on negotiations, Michael, Best & Friedrich LLP as the district's general counsel, and Quarles & Brady LLP as bond and tax counsel.
The board also chose Dan Barrett, of Barrett Sports Group LCC as project manager/negotiator.
"Now that our highly qualified team is in place we can enter into formal negotiations, with the goal of protecting taxpayers while moving forward on an expedited timeline," Neitzel said.
The financial team members were chosen after a recent request for qualifications process led by the Department of Administration at the request of the center district and proposals reviewed by special committees. State capital finance director David Erdman said it was expected that Morgan Stanley would also serve as the bookrunner on the upcoming bond sale and the district board would eventually appoint an underwriting syndicate with additional firms.
Morgan Stanley was chosen from 13 firms that submitted proposals to serve as lead manager. The firms were considered based on a combination of their experience with the state's credit and work on previous projects for NBA teams, Erdman said.
The timing of the sale remains up in the air.
"The plan of finance is still being developed," Erdman said. The borrowing could come in one transaction or be divided into multiple sales. The timing is unclear as the board must first finalize lease, design, and development agreements.
Team officials have said they hope construction will get underway by the end of the year but may have to wait for spring.
