Lincoln Center refinances debt in advance of Geffen Hall renovation

Posted on: November 29, 2016

“Lincoln Center for the Performing Arts is refinancing about a third of its hefty debt load as it readies for a planned $500 million renovation of the New York Philharmonic’s home venue at David Geffen Hall,” writes Jennifer Smith in Monday’s (11/28) Wall Street Journal (subscription required). “The organization … has about $270 million in debt. The lion’s share stems from a $1.2 billion overhaul of its 16-acre campus…. About $60 million borrowed in 2008 was scheduled to come due next month, with another $40 million due December 2018. Now Lincoln Center has pushed off those obligations until 2026, through an $87.5 million tax-exempt bond series … The transaction, set to close Tuesday, will save the performing-arts center more than $1 million in interest annually…. Robert Cundall, the organization’s chief financial officer, said the bond series allows Lincoln Center to save money on existing capital debt at a time of historically low interest rates, while preserving liquidity ahead of the David Geffen Hall renovation…. Lincoln Center is still waiting for the final portions of some multiyear pledges to come in from the previous redevelopment effort.… It is also responsible for 60% of the costs to renovate David Geffen Hall.”

Posted November 29, 2016