In Friday’s (3/15) Nashville Business Journal, Jamie McGee writes, “The Nashville Symphony is negotiating with bank lenders on $102 million in debt related to construction of Schermerhorn Symphony Center. The symphony has voted to seek non-renewal of a letter of credit, which expires in April, with a group of banks led by Bank of America. The symphony’s ‘executive committee recognizes that the cash flow the symphony is able to generate, either through operations or fundraising, just is not coming about as quickly as the business plan for the bonds originally anticipated,’ said Kevin Crumbo, symphony board treasurer. ‘The debt service is becoming far less manageable and so what the symphony is trying to do is reach an arrangement with its lenders to pay back what it can.’ … Board Chairman Ed Goodrich and CEO Alan Valentine wrote a letter to patrons of the symphony explaining the decision to not renew the letter of credit. In the letter, they pointed to a difficult economy, low donation levels, investment values and the 2010 flood that led to ‘unforeseen’ costs as factors leading to a restructuring, in addition to debt payments and operating shortfall.” In a separate article, Crumbo told the Wall Street Journal’s Emily Glazer that otherwise the symphony would continue operating normally and is expected to announce its 2013-14 season soon.
Posted March 18, 2013