Posted on 07/16/2008 9:42:54 PM PDT by TigerLikesRooster
Patriots' affiliate sues bond insurer to block fees
Securities trouble boosted costs of financing stadium NPS, a Patriots' affiliate, issued bonds to finance the new stadium, but market woes drove up the costs.
By Ross Kerber
Globe Staff / July 16, 2008
An affiliate of the New England Patriots football team is playing defense on a new field: the market for auction-rate securities.
The Foxborough team affiliate has sued Ambac Assurance Corp., the big bond insurer, in a dispute similar to a raft of others in which institutional borrowers found that policies they took out didn't guarantee low interest rates after auction-rate markets froze up this spring.
Ultimately the Patriots' owner, the Kraft family, faced a situation in which, in the worst case, it could have owed an extra $44 million a year in interest on money borrowed to build a new stadium, according to the suit. That's about three times what the team will pay star quarterback Tom Brady this season.
(Excerpt) Read more at boston.com ...
Ping!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.