The Atlanta Falcons soon expect to secure an $850 million construction loan to help finance the team’s new $1.5 billion stadium.
“We have received verbal and written commitments in excess of what we need,” Elliott McCabe, managing director with Bank of America Corp.’s sports finance and advisory group, said during an April 28 meeting of the Georgia World Congress Center Authority.
The Falcons on April 16 held a meeting with prospective lenders and expect the loan to close into escrow on Thursday.
“The feedback has been very positive,” McCabe said.
The $850 million senior credit facility has a five-year term or until longer-term financing is put in place, according to the Falcons. It will be used to fund construction and bridge timing of other cash receipts, including permanent seat licenses, the team said.
NFL owners in December approved waiving league debt rules to allow the Falcons to incur the debt, a sum that would be a record amount of borrowing for an NFL team (SportsBusiness Journal, Dec. 15-21, 2014).
All of the closing documents related to the project are expected to be final by mid-May.
The stadium also will be funded with $200 million in funds secured by hotel/motel tax, $200 million from NFL Ventures G-4 loans, revenue from the sale of PSLs and equity from the team.
The stadium is set to finish construction in 2017. As of March 31, construction was 18 percent complete, according to the Falcons.
Amy Wenk writes for the Atlanta Business Chronicle, an affiliated publication.
