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FLEET FINANCIAL GROUP ARRANGES $405M IN FINANCING FOR MLB
Published April 28, 1998
Fleet Financial Group announced it has arranged $405M in financing for MLB. The credit facility will be used by participating MLB teams to refinance existing debt and for general corporate purposes. The credit facility, arranged by Fleet's Sports Lending Group and funded by Fleet's Blue Keel Funding LLC, enables participating MLB clubs to access the commercial paper market through the securitization of certain shared revenues, including those from national media contracts and licensing and sponsorship. A group of banks led by Fleet National Bank will provide a liquidity facility to support the commercial paper issuance (Fleet). The credit agreement with MLB is extended from 2000 to 2005 and the amount that MLB teams can borrow increased from $250M under the previous deal (WALL STREET JOURNAL, 4/28). Fleet's Sports Lending Group's Patrick McAuliffe: "All of the leagues, [MLB] included, have certain shared revenue sources -- a large portion of them are media revenue. This basically harnesses the revenue flow and makes it available, right now" (Gregg Krupa, BOSTON GLOBE, 4/28).