Arlington Selects Bond Underwriters for Future Rangers Ballpark Transaction

Credit: Texas Rangers

The City of Arlington has selected a skilled team of bond underwriters to assist with the complex financial and legal transaction for the future Texas Rangers ballpark.

Under the public-private partnership with the Texas Rangers, the City’s contribution for the proposed $1 billion air-conditioned, retractable roof stadium is capped at $500 million. In February, the Arlington City Council appointed a bond underwriting team to sell bonds on the City’s behalf.

The Rangers’ lease on the future ballpark, set to open in 2020, runs through 2054.

Arlington’s portion of the stadium debt would be repaid with revenue generated by three existing venue taxes – a half-cent sales tax, a 2 percent hotel occupancy tax and a 5 percent vehicle rental tax, along with the $2 million a year in rent for the ballpark paid by the Rangers. The venue taxes are also being used to pay down the City’s remaining debt on AT&T Stadium, home of the Dallas Cowboys.

The bond underwriting team will assist the City in the future ballpark transaction as well as any future bond sales, such as if the Texas Rangers elect to use the parking and ticket taxes approved by Arlington voters to back team debt on the stadium.

The City of Arlington received 29 proposals during its search for a bond underwriting team. The team appointed by City Council comprises Citigroup, Morgan Stanley, Siebert Cisneros Shank & Co., Bank of America Merrill Lynch, RBC Capital Markets, Piper Jaffray, Frost Bank and Loop Capital Markets. The underwriters will be compensated out of bond proceeds.