Sacramento Completes Financing For New NBA Kings Arena With $273M Bond Sale

Sacramento city officials Thursday completed a $272.9M bond sale to "finance the public’s share" of the NBA Kings’ new arena, according to Dale Kasler of the SACRAMENTO BEE. The sale "cements the financing" for the $507M Golden 1 Center. To be repaid over 35 years, the bonds "replace a short-term loan the city executed in mid-August, when the Kings needed the city’s money quickly to avoid a potential cash shortage and loan default." Sacramento Treasurer Russ Fehr said that the annual debt service "will come" to $18M. Kasler notes the Kings "will pay an estimated two-thirds of the debt service through lease payments and property taxes generated by the new arena." The building "broke ground last fall and is set to open" in October '16. The city will "repay the debt with future revenues from the city’s parking meters and garages." Approximately $220M of the bond proceeds "will be plugged into arena construction; the rest will go into debt reserves and various bond-issuance costs" (SACRAMENTO BEE, 9/25).