The 2024 Debt is being issued pursuant to the Act which requires the term of the debt does not exceed the term of the lease. Given the possibility of the Reduced Extension Term, the 2024 Debt needs to be structured with a term not to exceed December 15, 2038. Also based on certain terms and provisions of the Lease Extension the 2024 Debt needs to be issued on a taxable basis. The Authority is interested in proposals for Alternative Financing options that may allow for flexibility to restructure the 2024 Debt in the future if certain lease provisions are renegotiated. Such financing options may include but are not limited to bank loans with early call options, extraordinary redemption provisions, convertible option, BANs with term out provisions, etc. In the future, the Authority intends to issue additional parity debt to be secured by the Financing Fund and intends to structure the 2024 Debt in a manner that maximizes flexibility and proceeds available at the lowest cost of borrowing for the 2024 Debt and future parity debt issuances to be secured by the Financing Fund (“Baseball Stadium Financing Program”). The Authority, with assistance from its Municipal Advisor, will evaluate all proposals and select the product and structure that provides the best value to the Authority.
