Barclays Center Owner Prokhorov to Refinance Arena’s Debt
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Brookyln Nets, New York Islanders home may sell $480 million
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Sports-arena debt is backed by payments in lieu of taxes
Mikhail Prokhorov, the Russian-born billionaire owner of the Brooklyn Nets and the Barclays Center, is taking advantage of rock-bottom interest rates in the U.S. municipal bond market to refinance about $480 million of debt issued in 2009.
The bonds, which are backed by payments in lieu of taxes, were issued at a top yield of 8 percent and rated BBB- by S&P Global Ratings Inc., and Baa3 by Moody’s Investors Service, the lowest investment grade. BBB rated revenue bonds maturing in 30 years yield 3.42 percent, according to data compiled by Bloomberg. The 17,732-seat arena, which is also home to the National Hockey League’s New York Islanders, will generate operating profits of $46 million before paying debt service in 2016-2017, according to the preliminary offering statement…
Barclays Center Owner Prokhorov to Refinance Arena’s Debt
