05-18-2009, 01:36 PM
<!--quoteo(post=38524:date=May 18 2009, 11:22 AM:name=cherp)-->QUOTE (cherp @ May 18 2009, 11:22 AM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=38522:date=May 18 2009, 11:12 AM:name=The Dude)--><div class='quotetop'>QUOTE (The Dude @ May 18 2009, 11:12 AM) <{POST_SNAPBACK}><!--quotec-->Hmm.. I guess no one told Sullivan about that...
<!--quoteo--><div class='quotetop'>QUOTE <!--quotec-->Tom Ricketts lines up banks to close Cubs sale
By Paul Sullivan
Sports Business Journal reports today that Tom Ricketts has lined up three banks -- JPMorgan Chase, Citigroup and Bank of America -- to arrange the $450 million in financing needed to close the Ricketts family's $900 million acquisition of the Cubs.
The magazine said the deal could be done by this week, and that the potential closing date is in July, after the bid is sent to the court overseeing the Tribune Co. bankruptcy. The Cubs have been on the market since April of 2007. The Ricketts family still must be approved by Major League owners, though that should not be a problem.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteEnd--></div><!--QuoteEEnd-->
So banks are funding 450mm of this. And they are still selling their limited shares? How many at what price?
I wonder, at the end of the day, how much Ricketts money is going into this thing? Not that it makes a difference....just curious.
<!--QuoteEnd--></div><!--QuoteEEnd-->
The family already sold close to $400 mil in Ameritrade stock to fund around half of the deal. If they can fund the other half with debt, as that article appears to insinuate, then they may not need the four $25 mil minority investors. 50% debt isn't that bad a debt ratio (Yanks are close to 100%) in MLB terms, though I wish they could get it to around 30-40%, as the interest payments + preferred stock dividends + costs of Wrigley maintenance or renovations could constrain our spending for a very long time.
<!--quoteo--><div class='quotetop'>QUOTE <!--quotec-->Tom Ricketts lines up banks to close Cubs sale
By Paul Sullivan
Sports Business Journal reports today that Tom Ricketts has lined up three banks -- JPMorgan Chase, Citigroup and Bank of America -- to arrange the $450 million in financing needed to close the Ricketts family's $900 million acquisition of the Cubs.
The magazine said the deal could be done by this week, and that the potential closing date is in July, after the bid is sent to the court overseeing the Tribune Co. bankruptcy. The Cubs have been on the market since April of 2007. The Ricketts family still must be approved by Major League owners, though that should not be a problem.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteEnd--></div><!--QuoteEEnd-->
So banks are funding 450mm of this. And they are still selling their limited shares? How many at what price?
I wonder, at the end of the day, how much Ricketts money is going into this thing? Not that it makes a difference....just curious.
<!--QuoteEnd--></div><!--QuoteEEnd-->
The family already sold close to $400 mil in Ameritrade stock to fund around half of the deal. If they can fund the other half with debt, as that article appears to insinuate, then they may not need the four $25 mil minority investors. 50% debt isn't that bad a debt ratio (Yanks are close to 100%) in MLB terms, though I wish they could get it to around 30-40%, as the interest payments + preferred stock dividends + costs of Wrigley maintenance or renovations could constrain our spending for a very long time.