04-22-2009, 01:32 PM
Ricketts offers to share Cubs
<!--quoteo-->QUOTE <!--quotec-->Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.
Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.
The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.
They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.
People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.
Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.<!--QuoteEnd--><!--QuoteEEnd-->
<!--quoteo-->QUOTE <!--quotec-->Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.
Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.
The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.
They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.
People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.
Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.<!--QuoteEnd--><!--QuoteEEnd-->
I got nothin'.
Andy
Andy