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Report- Leonsis Refinances The Capitals

via Mike Ozanian of Forbes,

After winning the Southeast Division in the Eastern Conference, the Washington Capitals were upset in the first round of the NHL playoffs this past season by the New York Rangers in seven games. But the Capitals have scored big on Wall Street.

Sources have told me that Ted Leonsis refinanced the debt on his hockey team last month with a $100 million package led by Citigroup. The loan was oversubscribed, meaning more people wanted to buy the debt than was available. And the refinancing was bigger than the previous loan, thereby increasing the amount of debt on the hockey team.

Leonsis owns the Capitals, Washington Wizards of the NBA, and the arena the two teams call home, the Verizon Center, through his holding company,Monumental Sports and Entertainment. Leonsis bought the Capitals for $85 million in 1999 and we valued the team at $250 million last November.

The NHL in general seems to be taking on more debt. The league increased its credit facility to $600 million from $400 million last month, also through Citigroup. The new deal is priced at the London interbank offered rate, or Libor, plus 250 basis points. The previous facility was $400 million, at Libor plus 300 basis points.

Filed in: NHL Teams, Washington Capitals, | KK Hockey | Permalink
  Tags: ted+leonsis

Comments

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Nice considering the LIBOR manipulation that was recently uncovered. Glad the wings don’t have to do things like this.

Posted by updem on 07/18/13 at 07:49 PM ET

Primis's avatar

Ted had better get ready for some tough times.

Winning year after year of pathetic Southeast divisional titles (and guaranteeing a Top 3 seed now matter how bad their record really was) is now gone, and the Caps are going into a much tougher grouping.  There’s nothing to indicate the Caps aren’t on their way down rather than up.

Posted by Primis on 07/18/13 at 11:06 PM ET

Nathan's avatar

Nice considering the LIBOR manipulation that was recently uncovered. Glad the wings don’t have to do things like this.

Posted by updem on 07/18/13 at 07:49 PM ET

I was just thinking… what’s the big deal about dropping 50 basis points? Anyone as well connected as Leonsis can probably make a phone call and get the actual LIBOR dropped to his desired rate on demand, forget basis points.

Posted by Nathan from the scoresheet! on 07/19/13 at 08:22 AM ET

Avatar

Great… just what the CAPITALS season ticket holders want to hear…  Ted has always put basketball first.  The woeful wizards…  That is what CAPS STH’s pay for.  HE could care less about the NHL and CAPITALS, other than they are a way for him to pay for his pathetic basketball team.

Posted by nhock on 07/19/13 at 11:20 AM ET

Avatar

Is this the first instance in USA professional sports where a hockey team is leveraged to prop up a basketball team in an urban environment?

Posted by hockey1919 from mid-atlantic on 07/19/13 at 11:31 AM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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