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New Jersey Devils Secure New Financing via CIT Group
@TGfireandice: Vanderbeek has bought out the shares of Brick City LLC (Gilfillan/Chambers) and Peter Simon (6%).
@TGfireandice: In addition to paying down a lot of team debt, which was about $78 million, it has now been combined with arena debt as part of refinancing.
MOD: link to last discussion on status of deal here.
Last edited by Fugu: 01-03-2013 at 12:54 PM.
Reason: ...
Does this now clear the way (or expedite) to sell to Bill Gallacher? Thought that (per theFouthPeriod) that Gallacher was interested in acquiring them from VBK and all the investors in-tow?
Does this now clear the way (or expedite) to sell to Bill Gallacher? Thought that (per theFouthPeriod) that Gallacher was interested in acquiring them from VBK and all the investors in-tow?
Tom Gulitti, Devils top beat reporter who actually foreshadowed this a few weeks ago, seems very confident that Jeff will not be selling the team (maybe non-controlling pieces but nothing more)
@TGfireandice: Absolutely not. RT @zerogravityfat: @TGfireandice do you think it's a precursor for a sale to the Calgary guy?
Does this now clear the way (or expedite) to sell to Bill Gallacher? Thought that (per theFouthPeriod) that Gallacher was interested in acquiring them from VBK and all the investors in-tow?
I highly doubt Vanderbeek went through all of this effort just to sell the team to Gallacher or anyone else. He said in the press release that "our future is now secure and we can be confident of continued on-ice success." Sounds like he plans on sticking around for the long term.
I think the team is an emotional investment for Vanderbeek, who has been a huge Devils fan for years and has sons who play hockey. He may try to bring in some minority investors or at most an equal partner, but I believe selling a majority stake would be an absolute last resort.
Financial details of the ownership transfer were not available due to a confidentiality agreement. Brick City LLC had stopped funding the team more than a year ago, so Vanderbeek was already the Devils’ sole financer. Vanderbeek’s new title is Chairman of the New Jersey Devils and New Jersey Devils Arena Entertainment LLC. “Managing partner” has been dropped from his title because he has no partners.
With CIT group working as the lead arranger, Vanderbeek has been working for months with its creditors to refinance its team debt of about $78 million. With the team’s long run to the Stanley Cup Finals last June. the success of Prudential Center in booking big act concerts such as The Who and The Rollng Stones, in combination with record-low interest rates, the Devils have already been able to pay down a significant portion of their debt.
While working through the refinancing and ownership transfer, the team received an advance of league distributions in January, 2012. That was money the team would have normally received at the end of the season, but several teams apply for and receive the advance.
In a news release obtained by The Record, the team states, “The organization believes that its successful refinancing during a work stoppage demonstrates the strength of the Devils franchise and the Prudential Center, enabling it to continue to execute on its business plan.”
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From today we now know that Jeff was able to pay off a lot of the team debt, he was able to combine the team and arena debt, and he got a great interest rate.
It's not unusual for a business to operate with large loans that they constantly roll over every 5 years. With the new CBA, the Devils should be pretty profitable and the Arena seems to be doing well for itself too so the loan should get chipped away slowly while being constantly rolled over.
In a news release obtained by The Record, the team states, “The organization believes that its successful refinancing during a work stoppage demonstrates the strength of the Devils franchise and the Prudential Center, enabling it to continue to execute on its business plan.”
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From today we now know that Jeff was able to pay off a lot of the team debt, he was able to combine the team and arena debt, and he got a great interest rate.
It's not unusual for a business to operate with large loans that they constantly roll over every 5 years. With the new CBA, the Devils should be pretty profitable and the Arena seems to be doing well for itself too so the loan should get chipped away slowly while being constantly rolled over.
Well that's the smart plan. The NHL though is full of idiots, so what would be the idiot plan?
Bad financial threads for the Devils in the past year, pages and pages of responses. God news thread, one page haha.
I'm guessing a lot of people were hoping the Devils would have to relocate. Now it looks like the Devils and the Isles are gonna be in the try state area for a long time.
Sorry Phoenix and Southern team fans. They're your problem now.
