Chase Securities Inc., a subsidiary of the Chase Manhattan
Corp., was chosen to arrange $140M in financing for a new S.F.
Giants ballpark, in what Chase calls "the largest project
financing ever" for an MLB team, according to Eric Brazil of the
S.F. EXAMINER. Under the deal, Chase "will sign up a number of
banks to create" a $140M credit line against which the Giants can
draw "until permanent financing is arranged through private
placement of long-term securities." The Giants plan to break
ground on 42,000-seat Pacific Bell Park in November '97, with
opening planned for the 2000 season. Giants President Peter
Magowan announced Kajima Int'l will be the project developer and
Huber, Hunt and Nichols will be the lead construction firm.
Previously, the Giants named HOK Sports Facilities Group as the
lead architect. Several "hurdles" remain, including an
environmental review process, negotiating a lease for the
ballpark site with the Port of San Francisco, and obtaining
permits from the State Lands Commission and the Bay Conservation
and Development Commission (S.F. EXAMINER, 9/9). The Giants
timed their announcement to coincide with a sports financing
conference put on by The Bond Buyer, a financial newspaper,
according to Edward Epstein of the S.F. CHRONICLE. Speculation
from investment bankers at the meeting was that the team would
have to "pledge revenues from the sharply increased attendance at
the new ballpark to pay off the construction loan" (S.F.
CHRONICLE, 9/10).
