“I’m sure this season is going to help,” he said.
Scarcity Value
The Mets sold $613 million municipal bonds in 2006 backed by payments in lieu of property taxes, lease revenue and installment payments to finance the construction of Citi Field. The team also issued $82.3 million of insured debt in 2009, the year the ballpark opened. The 2006 bonds are rated Ba1 by Moody’s Investors Service and BB+ by Standard & Poor’s, one step below investment grade.
Citi Field bonds don’t trade frequently because investors hold them for their higher yields, Miller said. Citi Field bonds with a 5 percent coupon and callable in January 2017 traded Monday among dealers at a yield range between 2.8 percent and 3.4 percent. Top-rated bonds maturing in one-year yield 0.3 percent.
“There’s certain scarcity value to them that’s helping their performance,” Miller said.
In 2014, Citi Field generated about $117 million in revenue and had about $84 million in expenses, including a $43 million payment in lieu of taxes, according to a financial statement filed by Queens Ballpark Company LLC, a Mets subsidiary.
Mets Postseason Run Raising Fortunes Of Citi Field Bondholders
October 22, 2015
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