Bonds on Rangers Ballpark Reach Maturity

Seat option bonds purchased by baseball fans in 1993 to partially finance the construction of the Rangers Ballpark in Arlington have reached maturity, 15 years after they were sold.

According to the City’s Financial and Management Resources Department, approximately 3,000 baseball fans are receiving letters informing them that their bonds have matured and can be redeemed as of Dec. 31, 2008.

Those purchasing the bonds did not receive interest on their initial investment, but the bonds did secure the option for these fans to purchase season tickets to games in the new facility. The seat option bonds raised about $17 million for the ballpark construction.

“We are pleased that so many local residents and baseball fans supported this venue and that the bonds issued by the Arlington Sports Facilities Development Authority in 1993 have matured and may be redeemed,” said Mayor Robert Cluck. “The sale of these bonds allowed us to build a world-class facility in our city that is today enjoyed by millions of fans.”

In 1991, Arlington voters approved a $135 million bond package to build a major league baseball complex for the Texas Rangers. In 2001, larger than anticipated increases in sales tax revenue allowed the City to retire the debt 10 years earlier than expected. The Ballpark in Arlington generates approximately $46 million in economic benefits for the City each year.

Deputy City Manager Trey Yelverton said that the financing structure, including option bonds, paired with a strong economy, made the ballpark a financially beneficial investment.

“Together, we built a one-of-a-kind facility in Arlington that was paid off early and returned financial benefits to the community,” Yelverton said. “We appreciate the investment of all who supported this important project.”

Individuals who participated in the seat option bond program with questions are asked to call Bondholder Communications at Bank of New York Mellon at 800-254-2826. The number is staffed by experts who can explain the process for redeeming bonds. Assistance is also available via e-mail at corporate.bond.research@bankofny.com or the web site at http://bondholders.bnymellon.com.