NEW YORK CITY-Battery Park City is borrowing about $1 billion to lower borrowing costs. The initiative will be undertaken in part to refinance auction-rate debt the agency has on its books.
A total of up to $612.5 million raised in a bond sale scheduled for next week will go toward retiring the auction-rate securities that were issued about 10 years ago, according to Bloomberg News.
“We've been enjoying a very low cost of capital,” says Matthew Monahan, a spokesman for the Battery Park City Authority, which manages the 92-acre parcel in Lower Manhattan. “There's concern going into the future that interest rates might rise.”
Battery Park City will keep interest-rate swaps that were part of its 2003 deal and run through 2033, Monahan adds. See story at Bloomberg News.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
