Council approves financing team for new arena and awards $160 million GO bond sale

The Oklahoma City Council on March 25 approved a financing plan for the new arena and accepted bids for a $160 million general obligation bond sale, part of a multi-step financing strategy to have construction funds available before the start of a voter-authorized sales tax in 2028.

Brent Bridal, assistant city manager and chief financial officer, told the council the city issued a request for proposals for a financing team in November and received 16 responses. After interviews and analysis with financial advisor PFM, staff recommended Goldman Sachs as senior manager, with BOK Financial Securities and Raymond James (Borg and Stanley was referenced in staff remarks) as co-managers to expedite a market sale when conditions are right.

Bridal said the arena sales-tax authorization — a 72-month, one-cent sales tax approved by voters in December 2023 — does not start collecting until April 1, 2028, and the city needs to borrow in advance to open the facility for the 2028–29 season. “Our goal right now is to get with our financing team and our underwriters to develop, get all of our documents in order so we can move quickly,” Bridal said.

Council later conducted the bond sale: staff reported seven bids were received and recommended acceptance of Goldman Sachs’ bid. The sale carried a reported true interest cost (TIC) of 3.936274 percent. Staff noted the city’s credit ratings were reaffirmed by Standard & Poor’s and Moody’s, and that after the sale the city would have about $66 million left to issue from the 2017 GO authorization.

Council action: the council voted to award the $160,000,000 general obligation bond sale to Goldman Sachs, approved the related ordinance on final passage and approved an emergency clause to expedite closing. City staff said the $160 million award will be used, in part, to support ongoing capital needs including arena financing; additional financing steps and documents remain to be completed by staff, bond counsel, and advisors.

Why this matters: selling bonds earlier than the start of the dedicated tax allows the city to pursue construction timing that staff says is necessary to open the arena by the intended season. The TIC and underwriting team selection affect the city’s borrowing cost and the speed at which the city can access debt markets.

Supporting details: staff contrasted the TIC with last year’s 3.44 percent TIC and noted market rates have risen; the spread between the lowest and highest bids on this sale was roughly seven basis points. Brent Bridal recognized bond counsel and advisory staff present for the sale, including bond counsel John Michael Williams and Jared Davidson, debt manager Mike Baskin, and PFM representative Dennis Whaley.

Ending: Staff said they will return to council with final documentation as the financing team and bond counsel move to close the transaction. No additional borrowing approvals were required at this meeting beyond the award, ordinance passage and emergency approval.