NFL Raising $195 Million With Senior Fixed-Rate Debt, Fitch Says
By Charles Mead - Aug 29, 2012 1:09 PM ET
The National Football League is selling $195 million of senior fixed-rate notes due in 2024, according to Fitch Ratings, which gave the debt a grade of A.
The most-watched U.S. sports league intends to issue the notes through its Football Trust unit and proceeds from the offering will be used for capital and other corporate purposes, Fitch said today in a statement.
The New York-based league that’s home to the Dallas Cowboys and New York Jets “promotes financial stability and competitive balance through a high percentage of revenue sharing,” Fitch analysts led by Chad Lewis wrote in the report. Debt service “is supported by large contractual revenue streams from investment-grade counterparties and a collective bargaining agreement” that limits team costs with a salary cap.
Greg Aiello, a spokesman for the NFL, didn’t immediately respond to telephone and e-mail messages seeking comment on the bond offering. An A rating is the sixth-highest of 10 investment-grade rankings.