The original debt was issued 2009 at a top yield of 8 percent. With interest rates much lower now as compared to 2009, refinancing the debt certainly made financial sense. From Bloomberg:
The largest piece of the deal, $228.5 million of uninsured bonds with a 5 percent coupon maturing in 2042, was priced to yield 2.88 percent. The debt, which is callable in January 2027, yields 1.44 percentage point more than top-rated debt of the same maturity, according to data compiled by Bloomberg.
“The overwhelming positive investor response to this bond offering demonstrates the market’s confidence in the leadership of Barclays Center and the operations of the venue,” said Brett Yormark, chief executive of Brooklyn Sports & Entertainment, in an e-mailed statement.
The 17,732-seat arena will generate operating profits of $46 million before paying debt service in 2016-2017, according to the preliminary offering statement.
Not too shabby, considering many critics predicted gloom and doom on the financial front for the arena project initially backed by developer Bruce Ratner.