The members of the National Football League are the latest corporate customers to see banks flex their capital markets muscle.
Fleet Financial Group has designed the most recent game plan, arranging a $185 million financing package for the Baltimore Ravens.
The deal-which is the second of its kind and the largest for an NFL team-includes a $90 million loan and a $95 million private placement.
Proceeds from the financing will allow Ravens owner Art Modell to refinance debts incurred in the team's move from Cleveland in February 1996 and to consolidate his ownership. The package was structured to avoid violating the NFL's $55 million ceiling on team debt.
"This structure gives us a mix of traditional bank and long-term financing," said Jim Bailey, executive vice president of Baltimore Ravens LP. By allowing the company to consolidate its ownership, the financing package will "give us the room to operate for the long term," he added.
Timothy Conway, a managing director of Fleet Corporate Finance, said the deal illustrated the power of "integrated corporate finance and banking capabilities" and also showed the "evolution of stadium economics," which allowed this kind of combined financing package to be done.
Typically, when a member club needs money, it taps a $400 million line of credit the NFL set up in 1992 with Citibank and NationsBank Corp. as co- administrative agents. A maximum of $55 million is available to each team, but so far only nine clubs have drawn on the line, the NFL said.
The private placement will consist of senior notes with a 15-year maturity. The loan is split into a $50 million, seven-year revolving credit facility and a $40 million, seven-year term loan, which was syndicated late last week.
"Fleet played a huge role in our case," Mr. Bailey said, adding that the banking company helped the Ravens deal with intricate financing issues and the unique concerns involving the league.
Fleet Bank, the administrative agent and arranger of the loan, wrapped up syndication for it last Thursday. BankAmerica Corp. was named co-agent. Societe Generale and Crestar Financial Corp. participated in the loan.
Last month First Union Capital Markets sold a $25 million private placement for the New York Giants football team, and First Union Corp. arranged a $20 million revolving credit for it.
