Fishers, Indiana, sold $170 million in bonds to refund a previous issuance and finance the construction of an arena for a minor league hockey team.
The city sold the bonds in two series. The tax-exempt Series 2023A bonds, consisting of $160 million, mature between 2026 and 2063, yielding between 3.64% and 5.08%. The taxable Series 2023B bonds, consisting of $10 million, mature between 2026 and 2034, yielding between 5.375% and 5.8%. The securities received a rating of AA from S&P Global Ratings, but the issuance contributed to a downgrade from S&P on the city’s outstanding debt.
“The downgrade reflects our view of the city’s declining coverage and liquidity, which we now view as adequate,” S&P analyst Bobby Otter said in a press release.
The proceeds will finance the construction of a minor league hockey stadium and a fire station. The 8,500-seat stadium will support the Indy Fuel, a team in the second division of minor league hockey. The Fuel are the ECHL affiliate of the National Hockey League’s Chicago Blackhawks.
The stadium, which will host other athletic and entertainment events outside of hockey season, is expected to anchor a $550 million expansion of the city’s downtown entertainment district, according to the official statement accompanying the sale of the bonds.
The bonds will also refund securities issued by the city last year.
Fishers is a city of more than 100,000 about 20 miles northeast of Indianapolis. The bonds are payable by Fishers tax revenue.
Raymond James & Associates, Inc served as underwriter on the issuance.