(Bloomberg)—The Atlanta Falcons have closed financing on their new $1.5 billion stadium a year earlier than executives originally projected.
Funding for the stadium, which opens next year, includes $200 million in public money backed by hotel and motel taxes and $200 million from the National Football League, according to the team. The other $1.1 billion will come from newly financed debt, seat license sales and equity contributed by Falcons owner Arthur Blank and his partners.
AMB Sports & Entertainment, the parent company of Blank’s business, has restructured an $850 million construction loan that it took out last year, according to Executive Vice President Greg Beadles. A third of that total will remain with bank partners Bank of America Corp. and SunTrust Banks Inc., which oversaw the original loan, while the other $566 million was converted to 26-year corporate bonds that were privately placed.
“We had phenomenal demand,” said Beadles, who led the financing effort. “We went out looking for a little more than half a billion in long-term debt, and we received bids back that were about $2.5 billion in total.”
AMBSE took on 18 institutional investors, mostly insurance companies and pension funds, which have invested in other stadium project across the major U.S. leagues.
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