SBJ/June 17-23, 2013/Finance

Kings refinance $15M as part of sale

The Sacramento Kings, as part of the team’s sale last month, refinanced $15 million owed to Galatioto Sports Partners, sources said.

Vivek Ranadivé leads the ownership group.
Photo by: NBAE / GETTY IMAGES
The group that bought the team last month, led by Vivek Ranadivé, assumed the club’s $125 million of debt borrowed through the NBA’s leaguewide credit facility. The club also had a $15 million loan from GSP, and that loan had to be renewed as part of the sale. GSP agreed to roll over the $15 million, meaning the new ownership is now responsible for the debt.

The new owners could ultimately add another $35 million of debt because the NBA’s team debt limit is $175 million. That option, the sources said, is under consideration.

The club additionally is considering debt for financing of its planned new arena. Any amount there would fall outside the team-specific limit.

GSP declined to comment, as did Game Plan, the financial adviser to the Kings.

— Daniel Kaplan

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