Grand Rapids, Michigan, issued $72.8 million in bonds to finance the construction of an amphitheater and other capital improvements.
The bonds mature between 2025 and 2054, yielding between 2.81% and 4.06%. They pay interest at 5%. The securities received a rating of Aa2 from Moody’s Investors Service and AA from S&P Global Ratings.
The rating reflects the city’s “strong local economy, which is the economic engine of western Michigan,” Moody’s analysts wrote.
The city will use about $20.4 million of the issuance proceeds to help build a 12,000-seat concert venue in its downtown area. The theater is expected to open in 2026 at a price tag of $184 million.
Grand Rapids is not on the hook for the entire cost. The development group building the theater is hoping to attract $70 million in private donations for the venue, and it raised $30 million by selling the naming rights. The state has provided an additional $30 million.
Grand Rapids will also use the bond proceeds to finance public improvements for various city departments.
Grand Rapids is the second-most populous city in Michigan. The city government’s website separates its local economy into three major industries: manufacturing, medical devices and life sciences, and information technology. The bonds are general obligations of the city, backed by its full faith and credit.
Huntington Securities, Inc served as lead underwriter on the issuance. MFCI, LLC acted as municipal advisor.