Coyotes Get Bonded
The NHL’s Phoenix Coyotes, which filed for bankruptcy protection in 2009, is costing Glendale, Ariz., a good chunk of money and the city is trying to ease its debt load with a bond sale.
Glendale is selling about $136 million in debt in the municipal-bond market, according to the Los Angeles Times.
Moody’s Investors Service cut its bond rating because of the city’s obligation to the Coyotes.
In exchange for the NHL’s promise to keep the team in the Phoenix ’burb and manage it, the city agreed to compensate the league and absorb up to $25 million in losses for each of 2011 and 2012, Glendale spokeswoman Julie Frisoni told the paper.