Page 2 of 2 Previous

Continued: Schafer: Stadium’s bond sale generated purple buzz

  • Article by: LEE SCHAFER , Star Tribune
  • Last update: February 19, 2014 - 9:34 PM

To keep it simple RBC made it a 4 percent bond sold to yield 4 percent — making these the only bonds in the tax-exempt portion of the deal to have the interest rate precisely match the yield, and thus sell at 100 cents on the dollar.

Hoeppner also suggested making the people’s bonds more affordable for everyday fans by dropping the usual $5,000 minimum denomination down to $1,000. Hoeppner said he can’t think of the last time a bond was issued in minimum denominations of $1,000.

“We loved it,” said Commissioner of Minnesota Management and Budget Jim Schowalter. “It was part of the reason that RBC won a really competitive process” for picking the lead underwriter on the bond issue.

After a delay of game due to litigation, the deal sold well in January. Recognizing that Vikings fans live in the Dakotas and Iowa, too, RBC made them available to non-Minnesotans.

Hoeppner said 159 certificates of ownership are to go out this week, representing about $3.25 million of the $7.5 million available of the 4 percent, June 2033 maturity. Hoeppner said the largest personal certificate order was for $200,000. “I see a couple of 20s on the list,” he added, “and lots of ones and fives.”

John Taft, the CEO of RBC Wealth Management in the United States, said the first criterion in picking an underwriter for any deal is the capability to get the bonds efficiently sold, “and there isn’t anything local about that.” RBC and Piper Jaffray have that capability, but so does JPMorgan.

Another factor is the ability to sell a lot of bonds to local individual investors, in whose accounts they will likely stay until they mature. That can improve stability and liquidity in the market for any issuer’s bonds.

That’s the reason to work with locals, Taft said. While RBC may be part of a global bank based in Canada, its U.S. wealth management group headquarters and lots of clients are in Minnesota. It was Minnesotans sitting down with Minnesotans describing how they planned to sell bonds to Minnesotans — and the odd Vikings fan in Iowa.

“I’m not sure People’s Bonds will work for everything,” Taft dryly observed.

You mean there wouldn’t be a certificate for bonds financing a new municipal solid waste facility?

“If you want a certificate of ownership for a solid waste facility bond,” Taft responded, “I’m happy to get you one.”

lee.schafer@startribune.com • 612-673-4302 • Twitter: @LeeASchafer

  • related content

  • No word yet on Metrodome teardown’s schedule

    Wednesday February 19, 2014

    The delay after an accident isn’t expected to imperil the 2016 opening of the new stadium.

  • A sample of the bond certificate for the new Vikings stadium.

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

San Francisco 4 Bottom 4th Inning
Pittsburgh 0
Minnesota 10/2/14 7:25 PM
Green Bay
Buffalo 10/5/14 12:00 PM
Detroit
Chicago 10/5/14 12:00 PM
Carolina
Cleveland 10/5/14 12:00 PM
Tennessee
St. Louis 10/5/14 12:00 PM
Philadelphia
Atlanta 10/5/14 12:00 PM
NY Giants
Tampa Bay 10/5/14 12:00 PM
New Orleans
Houston 10/5/14 12:00 PM
Dallas
Baltimore 10/5/14 12:00 PM
Indianapolis
Pittsburgh 10/5/14 12:00 PM
Jacksonville
Arizona 10/5/14 3:05 PM
Denver
Kansas City 10/5/14 3:25 PM
San Francisco
NY Jets 10/5/14 3:25 PM
San Diego
Cincinnati 10/5/14 7:30 PM
New England
Seattle 10/6/14 7:30 PM
Washington
Washington 1 3rd Prd 1:45
Buffalo 6
Carolina 3 3rd Prd 5:42
Columbus 5
Pittsburgh 1 3rd Prd
Detroit 0
Montreal 0 2nd Prd
Chicago 0
Arizona 0 1st Prd 13:33
Edmonton 0
Fla Atlantic 10/2/14 6:00 PM
FIU
UCF 10/2/14 6:00 PM
Houston
Arizona 10/2/14 9:30 PM
(2) Oregon
Louisville 10/3/14 6:00 PM
Syracuse
San Diego St 10/3/14 9:00 PM
Fresno State
Utah State 10/3/14 9:15 PM
(18) BYU
(6) Texas A&M 10/4/14 11:00 AM
(12) Miss State
Ball State 10/4/14 11:00 AM
Army
Iowa State 10/4/14 11:00 AM
(21) Oklahoma State
Marshall 10/4/14 11:00 AM
Old Dominion
Southern Miss 10/4/14 11:00 AM
Middle Tennessee
(20) Ohio State 10/4/14 11:00 AM
Maryland
Purdue 10/4/14 11:00 AM
Illinois
Florida 10/4/14 11:00 AM
Tennessee
SMU 10/4/14 11:00 AM
(22) East Carolina
Virginia Tech 10/4/14 11:30 AM
North Carolina
Eastern Mich 10/4/14 1:00 PM
Akron
North Texas 10/4/14 1:30 PM
Indiana
Massachusetts 10/4/14 1:30 PM
Miami-Ohio
Tulsa 10/4/14 2:00 PM
Colorado State
New Mexico 10/4/14 2:30 PM
TX-San Antonio
(3) Alabama 10/4/14 2:30 PM
(11) Ole Miss
(14) Stanford 10/4/14 2:30 PM
(9) Notre Dame
(17) Wisconsin 10/4/14 2:30 PM
Northwestern
Navy 10/4/14 2:30 PM
Air Force
(7) Baylor 10/4/14 2:30 PM
Texas
(4) Oklahoma 10/4/14 2:30 PM
(25) TCU
Wake Forest 10/4/14 2:30 PM
(1) Florida State
NC State 10/4/14 2:30 PM
Clemson
Buffalo 10/4/14 2:30 PM
Bowling Green
Ohio U 10/4/14 2:30 PM
Central Mich
Oregon State 10/4/14 3:00 PM
Colorado
Vanderbilt 10/4/14 3:00 PM
(13) Georgia
Kansas 10/4/14 3:00 PM
West Virginia
Kent State 10/4/14 4:00 PM
Northern Ill
South Alabama 10/4/14 5:00 PM
Appalachian St
Texas-El Paso 10/4/14 6:00 PM
Louisiana Tech
(15) LSU 10/4/14 6:00 PM
(5) Auburn
UAB 10/4/14 6:00 PM
Western Ky
Texas Tech 10/4/14 6:00 PM
(23) Kansas State
Michigan 10/4/14 6:00 PM
Rutgers
Hawaii 10/4/14 6:00 PM
Rice
Toledo 10/4/14 6:00 PM
Western Mich
ULM 10/4/14 6:00 PM
Arkansas State
Georgia State 10/4/14 6:00 PM
Louisiana
Idaho 10/4/14 6:00 PM
Texas State
Memphis 10/4/14 6:00 PM
Cincinnati
Arizona State 10/4/14 6:30 PM
(16) USC
So Carolina 10/4/14 6:30 PM
Kentucky
Pittsburgh 10/4/14 6:30 PM
Virginia
Miami-Florida 10/4/14 6:30 PM
Georgia Tech
(19) Nebraska 10/4/14 7:00 PM
(10) Michigan State
UNLV 10/4/14 7:00 PM
San Jose St
Ga Southern 10/4/14 7:00 PM
New Mexico St
California 10/4/14 9:30 PM
Washington St
Utah 10/4/14 9:30 PM
(8) UCLA
Boise State 10/4/14 9:30 PM
Nevada
Winnipeg 10/3/14 6:00 PM
Ottawa
Calgary 10/3/14 9:00 PM
Saskatchewan
Edmonton 10/4/14 3:00 PM
Toronto
Brt Columbia 10/4/14 6:00 PM
Hamilton
Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

Date/Opponent Time W L Score
2014 preseason     
Aug 8 - vs. Oakland 7 pmX10-6
Aug 16 - vs. Arizona 7:30 pmX30-28
Aug 23 - at Kansas City 7 pmX30-12
Aug 28 - at Tennessee 7 pmX19-3
2014 regular season     
Sep 7 - at St. Louis NoonX34-6
Sep 14 - vs. New England NoonX30-7
Sep 21 - at New Orleans NoonX20-9
Sep 28 - vs. Atlanta 3:25 pmX41-28
Oct 2 - at Green Bay 7:25 pm
Oct 12 - vs. Detroit Noon
Oct 19 - at. Buffalo Noon
Oct 26 - at Tampa Bay Noon
Nov 2 - vs. Washington Noon
Nov 9 - Bye
Nov 16 - at Chicago Noon
Nov. 23 - vs. Green Bay Noon
Nov. 30 - vs. Carolina Noon
Dec 7 - vs. NY Jets Noon
Dec 14 - at Detroit Noon
Dec 21 - at Miami Noon
Dec 28 - vs. Chicago Noon

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

question of the day

Poll: How will the Vikings do Thursday in Green Bay?

Weekly Question

ADVERTISEMENT

 
Close