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

Miami - LP: M. Dunn 1 FINAL
Atlanta - WP: D. Carpenter 3
Arizona - WP: T. Cahill 7 FINAL
Chicago Cubs - LP: P. Strop 5
San Francisco - WP: J. Machi 12 FINAL
Colorado - LP: C. Bettis 10
Texas - WP: M. Perez 3 FINAL
Oakland - LP: S. Gray 0
Houston - LP: J. Fields 3 FINAL
Seattle - WP: F. Rodney 5
Cincinnati - WP: A. Simon 5 FINAL
Pittsburgh - LP: C. Morton 2
LA Angels - LP: E. Frieri 4 FINAL
Washington - WP: D. Storen 5
Kansas City - LP: K. Herrera 3 FINAL
Cleveland - WP: B. Shaw 5
Baltimore - WP: C. Tillman 10 FINAL
Toronto - LP: T. Redmond 8
Chicago WSox - WP: A. Rienzo 6 FINAL
Detroit - LP: E. Reed 4
St. Louis - LP: M. Wacha 2 FINAL
NY Mets - WP: J. Niese 3
Minnesota - WP: C. Fien 6 FINAL
Tampa Bay - LP: J. Lueke 4
NY Yankees - LP: M. Pineda 1 FINAL
Boston - WP: J. Lackey 5
San Diego - LP: T. Ross 2 FINAL
Milwaukee - WP: K. Lohse 5
Philadelphia - LP: C. Hamels 2 FINAL
Los Angeles - WP: Z. Greinke 5
Charlotte 97 FINAL
Miami 101
Dallas 113 FINAL
San Antonio 92
Portland 112 FINAL
Houston 105
Pittsburgh 3 FINAL(OT)
Columbus 4
Anaheim 2 FINAL
Dallas 4
St. Louis 3 FINAL(OT)
Chicago 4
Houston 0 FINAL
Red Bull New York 4
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
2013 preseason     
Aug 9 - vs. Houston 7 pmX27-13
Aug 16 - at Buffalo 6 pmX20-16
Aug 25 - at San Francisco 7 pmX34-14
Aug 29 - vs. Tennessee 7 pmX24-23
2013 regular season     
Sep 8 - at Detroit NoonX34-24
Sep 15 - at Chicago NoonX31-30
Sep 22 - vs. Cleveland NoonX31-27
Sep 29 - vs. Pittsburgh (in London) NoonX34-27
Oct 6 - Bye
Oct 13 - vs. Carolina NoonX35-10
Oct 21 - at. NY Giants 7:40 pmX23-7
Oct 27 - vs. Green Bay 7:30 pmX44-31
Nov 3 - at Dallas NoonX27-23
Nov 7 - vs. Washington 7:25 pmX34-27
Nov 17 - at Seattle 3:25 pmX41-20
Nov. 24 - at Green Bay Noon26-26
Dec 1 - vs. Chicago NoonX23-20
Dec 8 - at Baltimore NoonX29-26
Dec 15 - vs. Philadelphia NoonX48-30
Dec 22 - at Cincinnati NoonX42-14
Dec 29 - vs. Detroit NoonX14-13

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

question of the day

Poll: How many regular season games will Vikings win?

Weekly Question

ADVERTISEMENT

 
Close