The MLB Rangers are "looking to sell" at least $1B in bonds backed by their TV contract with FS Southwest, according to sources cited by Soshnick & Sakoui of BLOOMBERG NEWS. The RSN agreed to pay the team about $1.6B over 20 years "under terms of a broadcast deal that began last year." Sources said that the club is working with Citigroup and Morgan Stanley to "raise money against that contract." A source added that FS Southwest is "aware of the team's attempt to raise money but isn't involved in the financing." A prospectus, reviewed by the sources, said that the proceeds "would be used for risk mitigation and diversification -- anything that would keep the network ... from honoring the contract that extends" through '34. The sources said that the money raised will be "held in escrow and paid out to the team over time, a revenue stream designed to mimic payouts from the television deal." The Rangers "won't be able to access the money outside of those payments or ahead of the schedule," which has been approved by MLB (BLOOMBERG NEWS, 11/3).
