Yankee Stadium Debt Refinancing Proposal Wins Approval From CityBy
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.