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December 9, 2009
Top-Rated Maryland Revives Refinancing as Muni Bond Yields Fall
Bloomberg.com
by Jeremy R. Cooke
BROOKLYN ARENA LOCAL DEVELOPMENT CORP. intends to issue $500 million of tax-exempt bonds to help finance construction of a new facility in New York City for the New Jersey Nets, which set a National Basketball Association record this month for the worst start to a season. The debt, rated at the lowest investment grades by Moody’s and S&P, will be backed by payments in lieu of property taxes, known as Pilots, derived from arena revenue. Forest City Ratner Cos. is developing the arena, Barclays Center, as part of the Atlantic Yards project in the city’s most populous borough. Underwriters led by Goldman Sachs and Barclays Plc are marketing the bonds, which need to be sold by year-end to meet a deadline for tax-exemption rules.
One of Forest City Ratner's biggest benefactors, the City of New York, is also issuing new debt — and it's better-rated than Bruce's.
NEW YORK CITY, the largest borrower among U.S. municipalities, plans to sell $700 million of taxable securities to fund public works, after offering $900 million in tax-exempts this week. The city will take competitive interest-cost bids tomorrow for underwriters seeking to market $83.9 million of notes. Banks led by JPMorgan Chase & Co. were selected to negotiate the sale of $616.2 million in federally subsidized Build America Bonds. New York is rated AA by S&P, Aa3 by Moody’s and AA- by Fitch.
NoLandGrab: What's a little competition between friends?
Posted by eric at December 9, 2009 10:27 AM