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December 16, 2009
Bonds away! Ratner’s tax-free bonds are snapped up fast
The Brooklyn Paper
By Stephen Brown
Bruce Ratner scored roughly half the money he’ll need for his Atlantic Yards arena in a matter of hours yesterday, selling out $511 million in tax-free bonds that were snapped up by investors thanks to their high interest rate and investors’ faith in the success of the project.
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Believe it or not, Ratner’s timing was excellent. Though the Atlantic Yards project bears little resemblance to the Frank Gehry fantasyland that Ratner first proposed in 2003, the ailing economy actually helped the bond sale.“There is a lot of confidence in the municipal bonds market these days,” said Debra Saunders, a member of the New York Board of Municipal Analysts. “The muni-market is viewed as a safe place to go.”
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The bonds, which are essentially loans issued by the state on behalf of Ratner, were rated just above “junk” status by the major ratings agencies earlier this month.The opposition to the project — which dumped fake “junk bonds” into a garbage truck on Wall Street on Monday — criticized the sale as yet another example of Ratner running roughshod over the public interest.
Posted by lumi at December 16, 2009 4:49 AM