Sea Lowers Its Costs Through Perfectly Timed Bond Maneuver

Summary


Among all the Pittsburgh-area cultural attractions clamoring for a share of Allegheny County's extra 1 percent sales tax money, one regular customer is missing this year.

Sports & Exhibition Authority officials shelved their yearly request for $1 million to $2 million in extra taxpayer assistance to shore up chronic seven-figure operating deficits at the David L. Lawrence Convention Center, Downtown. They were able to do so because of a well-timed financial maneuver to lock in a 4.05 percent interest rate -- down from 5.37 percent in 1999 -- on $174 million in bonds. The loans cover a portion of the debt remaining on PNC Park, Heinz Field and the convention center, which the authority owns.

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Sea Lowers Its Costs Through Perfectly Timed Bond Maneuver

"They went into the market almost on the perfect day last year," said David Donahoe, executive director of the Allegheny Regional...

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