Lincoln Center for the Performing Arts is refinancing $100 million worth of loans ahead of its planned $500 million renovation of the David Geffen Hall, the home of the New York Philharmonic.
The performing-arts center has about $270 million in debt, and will refinance two loans — one worth $60 million that’s due next month and a $40 million note that’s due in 2018 — with a $87.5 million tax-exempt bond series issued by the Trust for Cultural Resources of the City of New York, according to the Wall Street Journal.
The bond puts off the debt obligation until 2026 and will save the Lincoln Center $1 million in annual interest.
Robert Cundall, Lincoln Center’s CFO told the Journal that the bond series serves as “a form of bridge financing” and will allow the center to capitalize on low interest rates and preserve liquidity.
The David Geffen Hall, at 10 Lincoln Square Plaza, is one of several venues at the 16-acre Lincoln Center, the largest performing arts center in the country.
The fundraising for the $500 million renovation, set to begin in 2019, is just beginning. David Geffen, the entertainment mogul after whom the concert hall is named, has thus far given $15 million of a promised $100 million gift. [WSJ] — Chava Gourarie