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Jerrah Jones Needs More $$ for Stadium.

powerfuldragon

powerfuldragon

Enchilada Aficionado.
http://www.sportsbusinessjournal.com/article/60527

The Dallas Cowboys are seeking to borrow $350 million by Dec. 1, according to numerous finance sources, in one of the worst credit environments in the nation’s history.

The club’s proposed deal would refinance $126 million the team borrowed last year through the now-imploded auction-rate securities market, as well as add new debt to cover cost overruns at the team’s $1.2 billion stadium that is set to open next year, the sources said.

“Everyone is looking at the Cowboys’ deal. It is a huge bellwether,” said one finance source. “This is one of the only deals, period, in the market [sports or otherwise].”
Sports debt deals have been nearly nonexistent since the credit markets seized up in September. The Cowboys and New York Yankees borrowed $100 million jointly to fund their concessions startup Legends Hospitality (see SportsBusiness Journal, Oct. 20-26), but no other deals are thought to have closed during this time.

Cowboys owner Jerry Jones and the team’s lead lender, Bank of America, hosted more than a dozen banks at the suite sales center adjacent to the under-construction stadium in Arlington, Texas, on Oct. 27, offering a deal priced 2.5 percent over the London Interbank Offered Rate, a floating-rate index, sources said.

That rate last week stood at 2.39 percent, translating for the deal into a rate of just under 5 percent, which is low in this market. However, LIBOR has been wildly fluctuating, falling from 4.82 percent on Oct. 10 to last week’s level.

The Cowboys and Bank of America want the other banks to buy pieces of the loan, a process called syndication. The Cowboys and Bank of America declined to comment.
Click to expand...

it's a pretty lengthy article. interesting read.
 
The Cowboys and Bank of America want the other banks to buy pieces of the loan, a process called syndication.
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FYI syndication is the process used to bundle-up and market sub-prime
mortgage loans. I dunno, but how's that working out 'bout now ?
 
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