Anaheim mulls bonds to assist move for NBA's Kings

Reuters News
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Posted: Mar 25, 2011 7:43 PM

SAN FRANCISCO (Reuters) - Anaheim, California officials will vote next week on a plan for the city to finance improvements to the Honda Center to help bring the Sacramento Kings of the National Basketball Association to the city-owned facility.

The plan posted on Anaheim's website on Friday seeks approval from the city council to authorize the Anaheim Public Financing Authority to issue up to $75 million in lease revenue bonds to "support an NBA team's ability to make Honda Center their home."

The Kings' owners see the Southern California city as a potential new home for the franchise after failed efforts to finance a new arena in California's capital of Sacramento.

Several private investors have expressed interest in buying all of the debt the Anaheim authority would issue, a city spokeswoman said, adding that debt payments will be made with revenue from the Honda Center, which is managed by Anaheim Arena Management Llc.

Anaheim would be under no obligation to pay the bond debt, beyond available revenue from operations at Honda Center, already home to the Anaheim Ducks of the National Hockey League, the city spokeswoman said.

(Reporting by Jim Christie; Editing by Richard Chang)