Ottawa Senators announce completion of 135 million financing | MOD warning post #303

[mysens]

If you look into it, the last refinance was in 2013. Yep, 5 years ago, standard conventional loan or mortgage that was tied up for 5yrs. Time to refi so this is nothing to get excited about. Just pulled out a little more money for probably not much cheaper as far as rates go.

 

[Studzle]

Karlssson at 16.8 confirmed!!!

 

[Mark Stones Spleen]

Now don't be spending it all in one place, unless it's karlsson.

 

[Billy Bridges]

Now they can Pay Karlsson what he wants.

Not what he wants, just "what he deserves". Maybe Melnyk can honour existing contracts by paying players now.

 

[JD1]

definitely the terms were more favourable this time around. guaranteed tv revenue has skyrocketed. This financing tour was a race to the bottom from the lenders to find out how low they can go. .5% on 130M is 650K over 5 years is 3.25M savings to shave .5%. You can go on quite a tour when you are looking to save that kind of money.

If the previous deal was 2013 that was pre big TV contracts so on an operating basis this should be very very helpful.

hopefully it partially offsets the drop in ticket sales lol

 

[Tuna99]

These stupid promises of us getting better based on Melnycks loan ageeement - we suck because we cannot maintain relationships with our key players and there is no leadership from the owner.

Winning has nothing to do with money, we proved that once, Begas proved that this year. Winning is a habit, it’s a culture, its discipline, it’s hard work - this organization doesn’t have these qualities at the top of enough of them, therefore we will never be ready for prime time

And should we be proud of team has a $135 million dollar debt. This is a joke

 

[Mingus Dew]

definitely the terms were more favourable this time around. guaranteed tv revenue has skyrocketed. This financing tour was a race to the bottom from the lenders to find out how low they can go. .5% on 130M is 650K over 5 years is 3.25M savings to shave .5%. You can go on quite a tour when you are looking to save that kind of money.

If the previous deal was 2013 that was pre big TV contracts so on an operating basis this should be very very helpful.

hopefully it partially offsets the drop in ticket sales lol

50 basis points is a serious swing.

I’m more interested in the covenant package tbh.

 

[Gil Gunderson]

It’s still incredibly odd that the Sens made this public.

 

[L'Aveuglette]

/thread

 

[OgieO]

My crazy hairbrained theory... this deal was important to Eug keeping the team. Weird tweet the other day about him ducking out of owners meeting quickly but made it known he intended to remain an owner (or something like that). It seemed an odd thing to happen. What owner makes a point of letting other owners know he plays to stay? I have absolutely no evidence, and I am just talking out of my ass but that's my guess. I don't think it's good news for those of us that want him gone.

But the positive is that it being senior debt I would assume that we don't owe a heck of a lot more than that. Probably a LOC, but given the assets available I would assume no mezz financing.

 

[harrisb]

Be nice to know how much of the NHL credit facility we are leveraging on top of this? Also, USD or CAD? If the credit facility is maxed out and this is USD on top of $100m USD we are in bad shape, like $312m CAD in debt bad shape, or almost 3 time what he paid for the team, arena, capital tickets, sensplexes, land, etc

Could be money for lebreton if that is the case, or I'd sure hope so.

 

[Tnuoc Alucard]

It’s still incredibly odd that the Sens made this public.

With all the rumours about a possible sale swirling around, why would they not release this info, to put an end to those rumours?

Mickelbot has already pointed out that other teams have done the same, and perhaps this refinancing shows the financial stability of the Franchise going forward, when further financing is being sought, next year, for the Lebreton Flats re-development.

 

[Sens of Anarchy]

Securing Financing for Melnyk is like scoring 50 goals in a season... Celebrate baby

 

[Sens of Anarchy]

 

[Take a Bath Son]

I'm really thinking there could be a lot more to this refinancing than what the headline states. On the surface, you have a simple debt financing which presumably will allow for the operation of the team (all things being equal) for a considerable period of time. However, who is involved in this syndicate and what are the terms of the financing?

According to David Pagnotta on twitter, one particular party of this syndicate, has had considerable interest in owning the sens. Based on the fact it is senior debt, it seems to position them very well for future ownership of the team. It also seems to tie into rumours that credit was provided this spring to melnyk with conditions on sale to another party.

My hope is that his plan is to execute lebreton then step aside when the team reaches maximum value. He's here for a while, certainly, but I think the future is bright for the sens. We may be turning the corner from rock bottom.

 

[Take a Bath Son]

cue the article...

Senators receive offer for franchise

 

[coladin]

Great article which lost credibility with the $12M offer for Karlsson. LOL.

Hey, stranger things could happen and he might sell it, but he ain't selling. If he does, fantastic.

Twitter responses to this refinancing are hilarious. Or sad. People, this refi is a good thing, even a great thing which is why it was announced. If you believe all the numbers, what was a 150M mortgage 5 years ago is now 135M, so sounds like he made all his payments. Now he locks in at a much more favourable rate, saves millions and sounds like he borrowed some more whether to :

1. do further renos to CTC, which he hinted to
2. Sign important players
3. weather what will certainly be a disastrous revenue stream

The value of the franchise has never been higher, and hedging on Lebreton has only made it increase even more. Just the prospect of Lebreton, whether it happens or not, help with the value.

It is good news for those who care about the Ottawa Senators...and bad, devastating news for Sensung, FQL and all the other militants

 

[YouGotAStuGoing]

Great article which lost credibility with the $12M offer for Karlsson. LOL.

Hey, stranger things could happen and he might sell it, but he ain't selling. If he does, fantastic.

Twitter responses to this refinancing are hilarious. Or sad. People, this refi is a good thing, even a great thing which is why it was announced. If you believe all the numbers, what was a 150M mortgage 5 years ago is now 135M, so sounds like he made all his payments. Now he locks in at a much more favourable rate, saves millions and sounds like he borrowed some more whether to :

1. do further renos to CTC, which he hinted to
2. Sign important players
3. weather what will certainly be a disastrous revenue stream

The value of the franchise has never been higher, and hedging on Lebreton has only made it increase even more. Just the prospect of Lebreton, whether it happens or not, help with the value.

It is good news for those who care about the Ottawa Senators...and bad, devastating news for Sensung, FQL and all the other militants

Implying that someone who spends their free time posting on a forum about the Ottawa Senators doesn't care about the Ottawa Senators is an embarrassingly bad take.

 

[BonHoonLayneCornell]

Karlssson at 16.8 confirmed!!!

I hope he stays, but if that's what it takes, no thanks let him walk. That's insane.

 

[Sens of Anarchy]

I hope he stays, but if that's what it takes, no thanks let him walk. That's insane.

How much was the loan? How much is 16.8 * 8? pretty sure he was kidding

 

[BonHoonLayneCornell]

How much was the loan? How much is 16.8 * 8? pretty sure he was kidding

Well then. I just woke up on the west coast, no math allowed this early.

 

[coladin]

Implying that someone who spends their free time posting on a forum about the Ottawa Senators doesn't care about the Ottawa Senators is an embarrassingly bad take.

Gosh, seems like they are more hung up on Melnyk than the Ottawa Senators, just like a bunch of others, but ok. Embarrassing is a funny take in itself considering a lot of the posters who are on here. They would rather not support the team because of the owner, but...post away!

 

[Sensung]

Great article which lost credibility with the $12M offer for Karlsson. LOL.

Hey, stranger things could happen and he might sell it, but he ain't selling. If he does, fantastic.

Twitter responses to this refinancing are hilarious. Or sad. People, this refi is a good thing, even a great thing which is why it was announced. If you believe all the numbers, what was a 150M mortgage 5 years ago is now 135M, so sounds like he made all his payments. Now he locks in at a much more favourable rate, saves millions and sounds like he borrowed some more whether to :

1. do further renos to CTC, which he hinted to
2. Sign important players
3. weather what will certainly be a disastrous revenue stream

The value of the franchise has never been higher, and hedging on Lebreton has only made it increase even more. Just the prospect of Lebreton, whether it happens or not, help with the value.

It is good news for those who care about the Ottawa Senators...and bad, devastating news for Sensung, FQL and all the other militants

Too funny.

I'm thrilled we are past the denial stage and have now moved on to the negotiation through the press stage

We are getting to the short strokes...its only a matter of time (and a final push boycott if Euge is too stubborn).

 

[YouGotAStuGoing]

Gosh, seems like they are more hung up on Melnyk than the Ottawa Senators, just like a bunch of others, but ok. Embarrassing is a funny take in itself considering a lot of the posters who are on here. They would rather not support the team because of the owner, but...post away!

There's a difference between not supporting and not caring. I think every single poster on this board cares about the Ottawa Senators and the future of the team. Even those I disagree with. We all just have different visions on how to best achieve that future success. I happen to count myself as one who does not believe this team can ever thrive under Eugene Melnyk's management. As do the posters you enumerated in your post. But don't mistake disgust with management with apathy. If we truly didn't care, we wouldn't be spending our time posting here.

 

[harrisb]

Great article which lost credibility with the $12M offer for Karlsson. LOL.

Hey, stranger things could happen and he might sell it, but he ain't selling. If he does, fantastic.

Twitter responses to this refinancing are hilarious. Or sad. People, this refi is a good thing, even a great thing which is why it was announced. If you believe all the numbers, what was a 150M mortgage 5 years ago is now 135M, so sounds like he made all his payments. Now he locks in at a much more favourable rate, saves millions and sounds like he borrowed some more whether to :

1. do further renos to CTC, which he hinted to
2. Sign important players
3. weather what will certainly be a disastrous revenue stream

The value of the franchise has never been higher, and hedging on Lebreton has only made it increase even more. Just the prospect of Lebreton, whether it happens or not, help with the value.

It is good news for those who care about the Ottawa Senators...and bad, devastating news for Sensung, FQL and all the other militants

Or one number was quoted in CAD while the other in USD. Or Melnyk who now has access to a low interest 100m credit facility maxed that out then needed 135m more. The problem is that we can't see overall debt position or the financials so we will never know.