Texas Rangers Secure Funding for New Ballpark in Arlington

The Texas Rangers announced this week that it will fund at least $100 million more than initially expected for the new Rangers ballpark, which now has a total estimated cost of $1.1 billion.

On August 21, the Rangers secured a loan for its contribution toward the public-private project approved by Arlington voters last November. The financing was for $600 million, according to SunTrust Commercial Banking.

“While our deep expertise in sports and stadium financing made the transaction possible, it was our shared vision with the Rangers that made this deal come to life,” said Julia Harman, SunTrust Commercial Banking president for the Dallas-Fort Worth market.  “We are thrilled to have partnered with the Rangers organization on such an important project for the Dallas-Fort Worth region, and look forward to working with them in the years ahead.”

As outlined in the master agreement with the Rangers, the City of Arlington’s contribution for the climate-controlled ballpark, which will be called Globe Life Field, is capped at $500 million.

The Arlington City Council voted August 18 to make minor modifications to the Rangers Ballpark Lease Agreement and Purchase Option Agreement to provide lender protections that allowed the Rangers to close on its financing for the ballpark project.

Arlington anticipates selling bonds for the Globe Life Field project in early 2018. The City’s portion of the ballpark 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 Rangers’ lease on the future ballpark, set to open in 2020, runs through at least 2054, with the option of two five-year extensions.

“The Rangers are honored to continue our great partnership with the City of Arlington as we embark upon the building of Globe Life Field.  As we considered banking partners, SunTrust quickly emerged as the right leader for our financing along with strong support from joint lead arrangers, MUFG and US Bank.” said Kellie Fischer, executive vice president and chief financial officer of the Texas Rangers.

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