New Financing In Virginia

Developers of a new arena in Virginia Beach, Va., are pursuing a new financing source for the facility.  

United States Management told the city council it had acquired a preliminary commitment from Chicago investment bank B.C. Ziegler and Company, which specializes in senior living and healthcare sectors.

USM was originally seeking a $170 million deal with the Export-Import Bank of China to finance the $210 million, 18,000-seat venue with $40 million coming from private equity, according to The Virginia-Pilot. Under the potential deal, B.C. Ziegler will finance $200 million at an interest rate around 4.5 percent whereas the Chinese bank was charging 6 percent.

Additionally, it would free the developers from being required to use Chinese materials, The Virginia-Pilot reported. The council is expected to vote on the updated terms July 12. The arena could open by 2018.