Home Plate Update March 2018 - Page 9

Bonds for Globe Life Field Construction Contribution a year in rent for the ballpark paid by the Rangers. The venue taxes are also being used to pay down the City’s remaining debt on AT&T Stadium, home of the Dallas Cowboys. secondary position to the Senior Lien bonds. The true interest cost on these bonds is 4.35 percent. The bonds have various early call features, which will allow the City to use special taxes after paying debt service to pay off bonds early. On March 7, the City sold three issuances: • 2018A: $266.1 million in Senior Lien Tax-Exempt Bonds. These bonds are at parity with the 2017 Stadium issuance refunding done last year, and as the name implies, have first claim on revenues received. The true interest cost on these bonds is 4.1 percent. • 2018B: $28.2 million in Senior Lien Taxable Bonds. These bonds are at parity with the 2018A bonds and are taxable because a small amount of the City’s contribution is for private activity uses. The true interest cost on these bonds is 4.1 percent. While the taxable bonds have a higher interest rate on comparable maturities with the tax exempt, the bonds mature sooner, lowering the true interest cost. • 018C: $171.1 million in Subordinate Tax-Exempt 2 Bonds. As the name implies, these bonds are in a • Prior to the bond sale, the three rating agencies reaffirmed the City’s bond ratings. The ratings on the senior lien bonds are AA+, A+ and A1 from Fitch, S&P and Moody’s, respectively. The subordinate lien bonds are rated A3 from Moody’s. • As part of the transactions, the City purchased bond insurance on the tax-exempt bonds, which increased the ratings to AA. In the past, the City has issued debt as part of Special Tax issuances to fund required reserves. For the 2018 Bonds, the City took out a surety bond, which in the worst-case scenario would make up any shortfall in revenues that would otherwise have been paid for by reserves. This allowed the City to issue $30 million less in debt and avoid the attendant interest costs on the bonds. The bond sale closed on March 20. 2018 Fan Fest Offers Autographs, Tours and More Thousands of baseball fans attended the 2018 Texas Rangers Fan Fest at Globe Life Park in Arlington on January 20, where they were able to grab autographs, tour the ballpark and take photos with current and former Rangers players. The 2018 Texas Rangers Fan Fest Presented by Dasani also featured interactive question-and- answer sessions with Rangers executives, players and announcers, and free tours of the Rangers clubhouse and dugout. Fans also had a chance to participate in on-field events, such as running the bases and a home run derby. The Texas Rangers home opener is Thursday, March 29, versus Houston. Click here to learn about home and road game times for the 2018 season. 9