Not sure how these bond sales normally go down, but Scott Shearer of PFMG seems to think this is impressive:
You might think of the deal like your own 30-year mortgage. Investors lent the project $224 million by buying bonds. The arena authority has to pay that back at 4.77% interest. That brings the grand total to more than $444 million over the 30-year loan.
While that may sound like a lot, it’s actually less interest than the city expected. It got a better deal because so many investors wanted in.
“There were more investors than actual bonds available, and that allowed us to lower the interest rates even further,” said Scott Shearer with Public Financial Management Group, who is advising the city and its arena authority on the deal.
In fact, demand was so high, the project got an extra $8.5 million for free — a premium investors paid to get on board.