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May 14, 2010
Prokhorov, Ratner Seal Deal for Nets
NY Observer
by Eliot Brown
Per the announcement, the deal for the $900 million arena is now fully financed (Mr. Ratner apparently raised new financing needed to complete the deal), and the $510 million in tax-free bonds have been released from escrow.
...With the closing and a new $75 million investment by Mr. Prokhorov, credit ratings agency Standard & Poor's dropped a downgrade watch on the $511 million in tax-free bonds, leaving the existing BBB- rating on the bonds. Essentially, this means S&P believes there's less risk to the project than it did a few weeks ago, given that Mr. Ratner has found a way to get it fully financed.
Mr. Prokhorov, who now owns 45 percent of the arena development, put in an additional $75.8 million loan to help finance the project, according to the report, a loan that "has certain equity like characteristics."
Related coverage...
Gawker, Bruce Ratner Cons Russian into Buying Worst Team in NBA
NoLandGrab: That's nothing compared to the hustle Ratner and his elected (and unelected) accomplices have pulled on the citizens of New York.
Posted by eric at May 14, 2010 11:25 AM