REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Note and File - Disposition of the Forty Niners Stadium Management Company's Request Regarding the Refinancing of StadCo's Variable Debt
Report
BACKGROUND
On June 11, 2013, the Stadium Authority Board adopted Resolution No. 13-8 (Stadium Authority) approving an amended and restated Credit Agreement, and all related agreements, in connection with takeout financing for the construction debt. Among the agreements entered into as of June 19, 2013, were
* An amended and restated Credit Agreement (the "Authority Credit Agreement"), by and among the Stadium Authority, as borrower, Stadium Funding Trust ("FinanceCo"), as lender, and Goldman Sachs Bank USA ("GSB"), as administrative agent, and
* An amended and restated StadCo Obligations Agreement, by and among the Stadium Authority, as borrower, Forty Niners SC Stadium Company LLC (StadCo), as lender, and Stadium Funding Trust ("FinanceCo").
The Stadium Authority incurred debt for construction of the Stadium under these agreements. StadCo concurrently entered into a parallel credit agreement with FinanceCo and GSB to finance StadCo's tenant improvements to the Stadium and fund its obligations under the StadCo Obligations Agreement to make a loan to the Stadium Authority for stadium construction. All bank and institutional debt related to the stadium project was made available through FinanceCo, which is the direct borrower, and, in turn, loaned funds to the Stadium Authority and StadCo under their respective credit agreements. The credit facilities were designed to optimize the pricing and terms of the loans for both the Stadium Authority and StadCo.
The Stadium Authority and StadCo each used a combination of long-term fixed rate debt and shorter-term variable rate debt. The debt was structured this way to accommodate the continued construction requirements with the ability to draw additional funds under the short-term financing facility, and to allow for the most ...
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