On Tuesday, the state agency that sells public bonds completed the sale of state appropriate bonds for the new 65,000 seat Vikings stadium in downtown Minneapolis.
The Pioneer Press reported that the state sold the $462 million of taxable and non-taxable bonds at an interest rate of 4.27 percent. The bonds will fund the public's share of the $975 million stadium. The team is kicking in $477 million, the city of Minneapolis will chip in $150 million and the state's portion is $348 million.
"It was a good day to be selling bonds. After the closing of the bonds this week, the state's portion of the stadium financing will be completed," said Kristin Hanson, Assistant Commissioner for Treasury and Debt Management.
MPR News reported that Public Financial Management, Inc. is the financial advisor and RBC Capital Markets is the senior banker for the sale. State officials say the sale should formally close late this week, and the state will get the money then.
The bond sale was delayed by several legal challenges amid concerns that the lawsuits would stall the construction timeline on the stadium. The suits were dismissed last week. It wasn't immediately known whether Tuesday's 4.27 percent rate was better or worse than the rate the state could have secured on Jan. 13-14, the original day for the sale.
"The rates we got were really good because of market conditions," MMB commissioner Jim Schowalter told MPR. "That said, we’re probably still paying a little bit higher rates than we would for our typical general obligation bonds.
Ground has been broken on the new stadium, on the site of the former Metrodome. The team wants to be ready to play in the new stadium in time for the opening of the 2016 NFL season.