CHICAGO – Following a payment default, Standard & Poor’s dropped its rating Tuesday to D on $25 million of lease-backed revenue debt issued in 2010 by Vadnais Heights, Minn. to finance a sports complex for which it later cut financial support.

Trustee U.S. Bank NA reported earlier this month that it made the full interest payment due Feb. 1 of $581,826 on three parity series of bonds totaling $25 million from funds on deposit. The project failed to generate sufficient revenues to cover the full principal payment owed on the bonds or to cover interest due on $2 million of unrated subordinated D bonds.

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