Citi Field construction bond returns rise with Mets’ triumphs

Team projects 2016 attendance will rise by 500,000 to 3.1 million, raising revenue by $25M

New York /
Oct.October 23, 2015 01:41 PM

With the Mets on their way to their first World Series in 15 years, the team is projecting booming attendance in 2016. That’s good news for the holders of Citi Field construction bonds.

The Mets expect 3.1 million people to come to the 42,000-seat Flushing Meadows-Corona Park stadium next year, up from 2.6 million in 2015. That rise will boost revenue for the team by $25 million.

The team sold $613 million in municipal bonds in 2006 to fund construction of the stadium. Those bonds are rated Ba1 by Moody’s Investors Service and BB+ by Standard & Poor’s. The team issued $82.3 million more in insured debt in 2009, the year Citi Field opened.

The increased attendance would result in a “meaningful” rise in the amount of revenue available to pay out coupons on its bonds, Nuveen Asset Management’s John Miller told Bloomberg News. “I’m sure this season is going to help,” he told the site.

Citi Field bonds rarely trade rarely because of their high yields. One bond with a 5 percent coupon rate, callable in 2017, traded earlier this week at a yield range between 2.8 percent and 3.4 percent. That’s compared to 0.3 percent for a top-rated bond maturing in a year.

The Mets, owned by real estate developer Fred Wilpon, beat the Chicago Cubs 8-3 Wednesday night, winning the NLCS. They’ll face either the Kansas City Royals or the Toronto Blue Jays in the World Series

Early last year, the Related Companies, along with Sterling Equities, sought to build a shopping mall on top of the Citi Field parking lot, but their plans were severely delayed by a lawsuit that argued the land was technically a park, and so new construction required approval from the state legislature. [Bloomberg]Ariel Stulberg


Related Articles

arrow_forward_ios
Overall, the number of housing units that started construction last year was up 7 percent from 2019. (iStock)
Residential construction had busiest year since 2006: MBA
Residential construction had busiest year since 2006: MBA
Construction spending in November was dominated by housing again as concerns grow about “meager” nonresidential work (iStock)
Homebuilding boom continues with 16% increase
Homebuilding boom continues with 16% increase
(iStock)
Single-family housing starts now at 2007 bubble level
Single-family housing starts now at 2007 bubble level
The construction sector added 27,000 jobs in November, according to the latest Department of Labor figures. (iStock)
Amid bleak jobs report, gains in construction and warehousing
Amid bleak jobs report, gains in construction and warehousing
Residential construction accounted for 44% of spending in October. (iStock)
Housing drives rise in construction spending October
Housing drives rise in construction spending October
New York City District Council of Carpenters’s Monitor Glen McGorty (iStock; LinkedIn)
NYC carpenters union changes how it roots out mob ties
NYC carpenters union changes how it roots out mob ties
L+M Development Partners' Ron Moelis and a rendering of Sendero Verdo (Photos via L+M; Handel Architects)
L+M in deal with union laborers to cut wages on affordable projects
L+M in deal with union laborers to cut wages on affordable projects
Housing starts rose almost 5% last month
Housing starts rose almost 5% last month
Housing starts rose almost 5% last month
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...