In the latest installment of Muni Minute The Bond Buyer's 60-second video series that examines a top municipal market story that will have an impact in the coming week we examine the $1.2 billion stadium bond refinancing by the New York Yankees that will go up for a vote by the New York City Industrial Development Agency board.
VOICE OVER: The New York Yankees' proposed 1.2 billion dollars stadium bond refinancing is scheduled for a vote by the New York City Industrial Development Agency on Tuesday. The Yanks hope to save as much as $10 million in borrowing costs by refunding pilot revenue bonds issued in 2006 and 2009 to fund construction of the third version of Yankee Stadium in the South Bronx. That city-owned stadium opened in '09.
The baseball team annually makes so-called pilot payments, or debt payments in lieu of taxes to the IDA. With approval, the Yanks and the agency could issue the bonds in mid-October. Proceeds will also fund a debt service reserve and cover issuance costs. Munis within three months twice upgraded the stadium bonds, most recently to BAA1 on September 14th. Low interest rates make the climate favorable for sports facilities financing. I'm Paul Burton and this is your Muni Minute.