BREWERS DISCOVERING UPS AND DOWNS OF BOND ISSUE
Settling on the proper interest rates for the bonds to help
finance the Brewers' new $250M stadium "is proving to be a tough
balancing act," according to Kenneth Lamke of the MILWAUKEE
JOURNAL SENTINEL. While the rate must be high enough to attract
bond buyers, it must be low enough so the Brewers can afford to
pay them back -- and so far that medium has not been found.
Timothy Sheehy, President of the Metropolitan Milwaukee
Association of Commerce: "The teeter-totter swings back and
fourth." Two other factors --the coverage ratio and length of
the bonds -- also have yet to be worked out. Sheehy said he
"wouldn't be surprised" if Northwest Mutual Life "played a role"
in buying some of the bonds (MILWAUKEE JOURNAL SENTINEL, 5/25).
Today's WALL STREET JOURNAL reports $60M of the stadium will be
financed by privately placed debt so the team won't have to open
its books to public inspection (WALL STREET JOURNAL, 5/29).