Harris County-Houston Sports Authority Uses Reserves
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Harris County-Houston Sports Authority, which financed venues for three professional sports teams, dipped into reserves to reimburse insurers for $5 million they spent to buy back its bonds.
The insurers, MBIA Inc. and its reinsurer National Public Financial Guaranty Corp., were forced to buy the Series 2001C and 2001D variable-rate bonds by JPMorgan Chase & Co., the buyer of last resort required under the debt’s terms. The bank accelerated repayment after the global financial crisis led to a cut in MBIA’s credit ratings, according to Moody’s Investors Service, and after a stand-by purchaser for the debt was lost.