- Debt was issued in 2006, 2009 to replace historic stadium
- Moody’s upgraded debt credit rating in September and June
The New York Yankees received approval to refinance about $1 billion of bonds sold to build the team’s stadium as the Major League Baseball club seeks to take advantage of near record-low borrowing rates to generate cost savings.
The New York City Industrial Development Agency unanimously approved the refinancing of the tax-exempt debt, which was issued in 2006 and 2009 by the agency, to build the 50,287-seat stadium. Moody’s Investors Service raised the stadium’s rating to Baa1 last week, following a one-step upgrade to Baa2 in June, citing the strength of the franchise. The Yankees rank second of 15 American League teams in attendance, according to Baseball-Reference.com.
The Bronx Bombers are the latest professional sports club in the New York region to refinance. Russian-born billionaire Mikhail Prokhorov, owner of the Brooklyn Nets and the Barclays Center, refinanced nearly $500 million of the arena’s debt in August, saving $90 million. The New York Post in an earlier report cited an unnamed source as saying that the Yankees hoped to save $10 million annually through the refinancing.