Nashville Predators refinance $75m line of credit

[LadyStanley]

http://www.tennessean.com/article/20110104/NEWS02/110104039/Predators-owners-shore-up-team-finances

Predators Chairman Tom Cigarran said refinancing the debt allows the team to recruit additional local investors and begin negotiations with Mayor Karl Dean about extending the Bridgestone Arena lease agreement that expires in 2012. Cigarran said he would like to begin talks with Dean’s administration in the spring about a new agreement.

Original LOC was from 2007 with CIT.

Click to read more...

 

[AtlantaWhaler]

Good for Preds fans. Great franchise.

 

[CC Chiefs*]

Isn't this another way to say bankruptcy? Only word that's missing reorganize.

 

[AtlantaWhaler]

I was reading it as making the finances more attractive to additional investors and sign a lease keeping the team in the city for a long time.

 

[jessebelanger]

Isn't this another way to say bankruptcy?

No..

 

[He Lied to Mario]

Isn't this another way to say bankruptcy? Only word that's missing reorganize.

I guess you think when someone refinances their house to a lower rate that they are going bankrupt too.

 

[MaskedSonja]

I guess you think when someone refinances their house to a lower rate that they are going bankrupt too.

Actually, I've known a few people who re-financed their home who ended up foreclosing a number of years later, and/or ended up claiming bankruptcy in the end (and yes you'd think BECAUSE they were able to finance at a lower rate, they had good credit and could afford it-wasn't necessarilythe case)

Not saying that's what it means all the time, just saying it does happen.

 

[CC Chiefs*]

Actually, I've known a few people who re-financed their home who ended up foreclosing a number of years later, and/or ended up claiming bankruptcy in the end (and yes you'd think BECAUSE they were able to finance at a lower rate, they had good credit and could afford it-wasn't necessarilythe case)

Not saying that's what it means all the time, just saying it does happen.

That's my point. Are they saying we are starting be in trouble before they actually come out and say we are in trouble?

 

[tarheelhockey]

That's my point. Are saying we are starting be in trouble before they actually come out and say we are in trouble?

But there's no basis for making that assumption. Organizations re-finance loans all the time without going bankrupt. There's no "smoke" here.

 

[CC Chiefs*]

But there's no basis for making that assumption. Organizations re-finance loans all the time without going bankrupt. There's no "smoke" here.

All I'm saying is this is in many cases a start as what's could be a problem.

 

[nomorekids]

That's my point. Are they saying we are starting be in trouble before they actually come out and say we are in trouble?

There's nothing here to indicate that though. It's just a conclusion to jump to because of the perception of Nashville as a "troubled" franchise.

Nashville's attendance is averaging the highest it has in ten years, revenues(including non hockey, included in the Powers Mgmt bubble) are significantly up. This is just another positive step. Ownership said last season that they wanted to find to find a more favorable LOC, and doing so would allow them to bring more investors in and, as the article mentions, begin working on a new lease.

 

[TaketheCannoli]

Isn't this another way to say bankruptcy? Only word that's missing reorganize.

Let's see:

Attendance is up

Revenues appear to be up as well

They want to renew their lease


Those are all signs of a pending bankruptcy to me.


I have to ask myself, "Why do people seem to desperately hope teams fail?"

 

[Duke749]

I was very happy to hear this about Nashville, then CC came in here to ruin it.

 

[AtlantaWhaler]

I have to ask myself, "Why do people seem to desperately hope teams fail?"

At times I think "I desperately hope teams fail" should be the the new name of the "Business of Hockey" section.

 

[triggrman]

Because someone looking to file bankruptcy would be looking to extend a lease agreement...

CC hates that Nashville is doing good and looks for black clouds on every sunny day....

 

[Evil Doctor]

I have to ask myself, "Why do people seem to desperately hope teams fail?"

I don't think there is one person on this board hoping for franchises to fail.

I have to ask myself "Why do people consistently hide their heads in the sand with regards to problems with the league?"

 

[TaketheCannoli]

I don't think there is one person on this board hoping for franchises to fail.

I have to ask myself "Why do people consistently hide their heads in the sand with regards to problems with the league?"

I beg to differ with you- many posters are hoping and praying for failure. Their reasons seem to vary.

and you think this story indicates problems?

WOW-

 

[AllByDesign]

There are many posters that are praying for franchises to fail because of the inclination of opinion that hockey in non-traditional markets can't possibly work... Trying to convince otherwise is a futile task.

This story is not one of failure. Anyone with an once of business accumen knows that restructuring debt in the corporate world is as common an accurance as one applying for a new credit card that has a better introductry rate. It is normal. To be fair it does sometimes occur when a company thinks the feces is about to hit the fan, but that is not the common denominator.

 

[nomorekids]

Worth noting also is that the previous creditor was CIT, who are not exactly stable in their own right at the moment. I'm sure that played a part in the desire to take business elsewhere.

 

[AtlantaWhaler]

I don't think there is one person on this board hoping for franchises to fail.

You must be new to the Business forum. Welcome.

 

[MaskedSonja]

There are many posters that are praying for franchises to fail because of the inclination of opinion that hockey in non-traditional markets can't possibly work... Trying to convince otherwise is a futile task.

This story is not one of failure. Anyone with an once of business accumen knows that restructuring debt in the corporate world is as common an accurance as one applying for a new credit card that has a better introductry rate. It is normal. To be fair it does sometimes occur when a company thinks the feces is about to hit the fan, but that is not the common denominator.

This is true, and my comment wasn't trying to say otherwise, other than it could happen that way. Personally the only things I've read about Nashville is they seem to be making progress with revenue, attendance-maybe they aren't selling out, but there is noticable progress. Admittedly these days "re-financing" seems to be associated with failure (Blockbuster as an example)-but it isn't always the way.

 

[AllByDesign]

This is true, and my comment wasn't trying to say otherwise, other than it could happen that way. Personally the only things I've read about Nashville is they seem to be making progress with revenue, attendance-maybe they aren't selling out, but there is noticable progress. Admittedly these days "re-financing" seems to be associated with failure (Blockbuster as an example)-but it isn't always the way.

Re-financing isn't always a news-worthy item so it isn't a front of face item unless you are reading the trade magazines. One of the most notable would be Ford. They re-financed their debt with very favorable terms in 2006. These terms also required a re-structure... they were in the crapper. When the market hit the fan they looked like the angel because they didn't need an influx of cash to weather the economical storm... they were flush, and re-structured. They came up smelling like roses while GM and Chrysler looked like paupers.

GM and Chrysler would have used the same avenues of Ford in 2006, but was not able to as the lending market crashed.

To get to the point, Ford's re-financing of debt was not newsworthy so few outside of the Wall-Street world would have been aware of this fact.

 

[nomorekids]

This is true, and my comment wasn't trying to say otherwise, other than it could happen that way. Personally the only things I've read about Nashville is they seem to be making progress with revenue, attendance-maybe they aren't selling out, but there is noticable progress. Admittedly these days "re-financing" seems to be associated with failure (Blockbuster as an example)-but it isn't always the way.

actually, they've already eclipsed their sellout total for the entire season last year, and have been at or near sellout for half of their homegames...so...at least a good chunk, they are

 

[Preds Partisan]

The terms of the original CIT Group loan were less than desirable (as has been readily acknowledged by the owners), but given the quick time table the ownership group had to put together the deal to keep the Preds in Nashville, they took that particular deal to move things forward. The Del Biaggio (crook and a half) fiasco, criminal proceedings, and bankruptcy prevented the ownership group from finalizing the acquisition of his outstanding shares in the team until September 2010 at which time they could legally proceed with the refinancing referenced above. All of the financial institutions involved with the new "senior credit facility" are either headquartered in or have operations in Nashville (although it's not clear if that was intentional or coincidence). End of story.

In other financial news, we refinanced our house last year to take advantage of historically low mortgage rates. Similar to the Preds situation, our new loan is better than our original one.

Now for the weather......

 

[jessebelanger]

The terms of the original CIT Group loan were less than desirable (as has been readily acknowledged by the owners), but given the quick time table the ownership group had to put together the deal to keep the Preds in Nashville, they took that particular deal to move things forward. The Del Biaggio (crook and a half) fiasco, criminal proceedings, and bankruptcy prevented the ownership group from finalizing the acquisition of his outstanding shares in the team until September 2010 at which time they could legally proceed with the refinancing referenced above. All of the financial institutions involved with the new "senior credit facility" are either headquartered in or have operations in Nashville (although it's not clear if that was intentional or coincidence). End of story.

In other financial news, we refinanced our house last year to take advantage of historically low mortgage rates. Similar to the Preds situation, our new loan is better than our original one.

Now for the weather......

Are you saying you're bankrupt???? We can raise some money for you if you need....... You should have built in a traditional market..