The New York Mets confirmed that they have taken out a $40 million bridge loan with the approval of Major League Baseball.
In a statement posted on its website, the team said the loan would assist it as it attempts to raise money by selling minority stakes. “The bridge loan was approved by Major League Baseball and the syndicate of lenders to the Mets,” said the statement, posted Monday evening. “The process for the sale of minority shares in the team continues to go very well.”
The New York Times, citing sources, said Bank of America provided the $40 million loan. The Mets have yet to pay a $25 million loan that owners Fred Wilpon and Saul Katz received from MLB a year ago
In addition, the ball club on Thursday must pay conduit issuer the New York City Industrial Development Agency $27 million for interest on bonds sold to build Citi Field, which opened in 2009 to replace Shea Stadium.
The agency sold $629.6 million of tax-exempt bonds secured by payments in lieu of taxes and $65.5 million of taxable bonds in 2006 and 2009 on behalf of Queens Ballpark Co.
Moody’s Investors Service in February revised its outlook on the bonds to negative. It rated the bonds Ba1.
The rating agency cited a $1 billion lawsuit by the trustee for Bernard Madoff’s estate related to the team’s investments in Madoff’s Ponzi scheme.
Wilpon and Katz, who say they want to sell only a minority interest in the team, rejected a roughly $200 million offer from hedge fund manager David Einhorn in September. Wilpon and Katz had concerns about Einhorn, the president of Greenlight Capital, wanting to eventually own a majority stake in the team.
After those talks broke down, the Mets expressed a desire to sell smaller minority stakes to multiple investors.
The team’s financial problems were cited as a factor in star shortstop Jose Reyes’ decision last week to sign with the Miami Marlins as a free agent.
