Raiders Stadium again needs backup funds to meet debt payment.

[Ernie]

For the second time in six months, Nevada’s Clark County has to pull millions of dollars from reserve funds to meet a payment on the Las Vegas Raiders’ one-year-old stadium.

The county disclosed in regulatory filings that it will make an unscheduled draw of $11.7 million from one of the reserve funds backstopping the $645 million in bonds issued in 2018 that helped finance Allegiant Stadium. The county has a $16.1 million payment due on the bonds for June 1.

...

In November, municipal officials pulled out $11.6 million from reserves to meet the Dec. 1 semi-annual payment. Clark County dedicates a hotel tax of 0.88% around the famed Strip and 0.5% from hotels near the stadium to repay the bonds. Hotel occupancy is rebounding in the city but still fell 36% short of the 2019 level in March, according to data from the Las Vegas Convention and Visitors Bureau. While the county pledges to maintain a bond reserve of two times annual debt service payments, the drawdown isn’t a default—a specific action that gives bondholders legal recourse—under the terms they were issued.

Tourist tax won't cover stadium payments so the local government has to cover. I believe there are similar funding structures for some NHL stadiums?

Click to read more...

 

[tarheelhockey]

Bad timing to fund a stadium through tourist taxes.

 

[LadyStanley]

Well, considering that tourism went to almost zero for 3 months last year, NO conventions for more than a year, and capacity was 50% or less until May 2021, NSS. (Most casinos when they did reopen just did Thursday-Sunday hotel services, closing during the week as there were no convention visitors.)

Casinos to be back at 100% (casino floors) by June 1. Most shows (that are re-opening) will do so in the next 6-8 weeks, with growing capacity. A number of conventions have announced they are returning to in person events in Las Vegas (and they'll be the first to experience the new (Elan Musk) The Boring Company underground people mover between buildings rather than having to hike a mile between buildings (in the heat/weather).

First concert to be held at Allegiant announced for July. (After Garth Brooks August 2020 concert cancelled.)


(T-Mobile is at 50% today, and should be increasing hockey attendance if VGK advances to 2nd round and beyond.)

Allegiant had no concerts in the last year. And a handful of fans (family mainly) at UNLV football games.

 

[sh724]

The article mentions a potential default in the future, as someone who works in commercial banking, many businesses have defaulted on their loan covenants. Unless the business is a very high risk industry or the obligor has major issues the default is just waived 99% of the time and life goes on like it never happened. If the county were to default it will look really bad but no one is going to take action against them.

 

[LadyStanley]

I seem to recall that the stadium authority had 2-3 YEARS worth of payments in an account they could access with COVID shortfalls for CY2020 and CY2021.

It's a concern only because they have to tap that. Not that they can't meet their obligations.

 

[LadyStanley]

County taps reserve fund to make Allegiant Stadium bond payment

Paywall. Reserve fund set up with 2 years worth of bond payments $90+ million.
Tapped to make December 2020 payment (~$11.7m of $16m) and June 1, 2021 payment. $11.7m pulled of $16m bond servicing. Notice of intent to do so filed May 25.

 

[Lunatik]

Well, considering that tourism went to almost zero for 3 months last year, NO conventions for more than a year, and capacity was 50% or less until May 2021, NSS. (Most casinos when they did reopen just did Thursday-Sunday hotel services, closing during the week as there were no convention visitors.)

Casinos to be back at 100% (casino floors) by June 1. Most shows (that are re-opening) will do so in the next 6-8 weeks, with growing capacity. A number of conventions have announced they are returning to in person events in Las Vegas (and they'll be the first to experience the new (Elan Musk) The Boring Company underground people mover between buildings rather than having to hike a mile between buildings (in the heat/weather).

First concert to be held at Allegiant announced for July. (After Garth Brooks August 2020 concert cancelled.)


(T-Mobile is at 50% today, and should be increasing hockey attendance if VGK advances to 2nd round and beyond.)

Allegiant had no concerts in the last year. And a handful of fans (family mainly) at UNLV football games.

WWE has announced Summer Slam will be ay Allegiant Stadium, it will be their first major PPV event after they return to the road mid-July

 

[LadyStanley]

Yes, events are coming back.

Allegiant Stadium Las Vegas | Ticketsonsale

Two in July. Three (plus NFL preseason game) in August, etc.