Chase to arrange $140 million in financing for Pacific Bell Park construction.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 9, 1996--The San Francisco Giants today announced that Chase Securities Inc. will be the lead financial institution arranging $140 million in financing for the construction of Pacific Bell Park.

This unprecedented financing package represents the largest project financing ever for a major league baseball club.

Chase Securities Inc. is a subsidiary of The Chase Manhattan Corp., the largest banking company in the United States, whose flagship bank -- The Chase Manhattan Bank -- is the nation's largest.

"The $255 million ballpark project is unprecedented in the history of major league baseball and when we began searching for a financial partner, we looked for someone who had the experience and expertise in complex financings," said Giants President and Managing General Partner Peter Magowan. "Chase is clearly a proven leader in this field."

In a series of related announcements, the Giants also announced its development, design and construction team for Pacific Bell Park, including Kajima International as the lead project manager and developer, HOK Sports Facilities Group as the lead architect, Huber, Hunt and Nichols as the lead contractor and The Jefferson Co. as coordinator of the ballpark's affirmative action program.

Highlights of the Chase-Giants Partnership

Chase Securities Inc. was selected from among more than a dozen world-class financial institutions seeking to provide financing for this project. Chase's selection was based on its aggressive interest in this project and its expertise in advising and arranging complex financings and its market leadership in global syndicated finance, private placements and project finance.

Through its dedicated National Sports Group, Chase is also at the forefront of financing for major U.S. sports leagues and has advised a large number of clients on team, arena and stadium financings.

Chase will initially structure and arrange $140 million in syndicated bank credit facilities for the construction of the ballpark. It is intended that the $140 million bank facility will be replaced by a permanent financing, using the private placement of long-term securities -- also to be arranged by Chase. Additionally, Chase will provide overall financial and project advisory services to the Giants.

The funding of the $255 million Pacific Bell Park project, the first privately financed major league ballpark in 30 years, will include the following:

-- $140 million in syndicated bank financing arranged by Chase Securities Inc.

-- $100 million in naming rights, sponsorship rights, concession rights, pouring rights and charter seat sales

-- $10-15 million in tax increment financing provided by the San Francisco Redevelopment Agency which will be repaid by possessory interest tax revenues generated from the Giants playing at Pacific Bell Park.

"Chase is delighted to be a partner with the Giants in the creation of Pacific Bell Park and we look forward to working with the team in building the showcase baseball venue in the United States," said Rob Tilliss, vice president of Global Syndicated Finance and head of the National Sports Group for Chase Securities Inc.

Giants Select Development Design & Construction Team

The Giants also announced the formation of its construction and design team overseen by Kajima International. Kajima is a leader in the U.S. commercial real estate market with a record of more than 1,500 projects. In its diverse history, Kajima has won assignments to finance, design and construct a variety of mixed-use developments, such as the Meadowlands Entertainment Pavilion and the Greater Los Angeles World Trade Center. It is also the source of completion guarantee and credit enhancement facilities in support of public and private sector project financing.

The Giants and Kajima International have formed an alliance unprecedented in the development of major league sports facilities. Kajima will serve as the project developer and is responsible for the performance of all work required to design and construct Pacific Bell Park. In addition, Kajima will guarantee the on-time, on-budget completion of the project.

This unique package of services -- professional management of a complex, challenging project and strong financial backing covering complete project delivery -- enables the Giants to achieve schedule and cost targets with a huge degree of certainty and minimal risk. The enhanced level of financial security that the Kajima guarantee gives to project lenders has enabled the Giants to create a structure that is unprecedented in the history of sports facility development.

"Pacific Bell Park is a very important project for Kajima International and it will receive our highest level of corporate commitment," said Marvin Suomi, executive vice president, Kajima International. "We look forward to the successful completion of a project that will be a major contribution to the City and County of San Francisco."

In addition to Kajima, the Giants also announced that it has selected Huber, Hunt and Nichols (HHN) to serve as the lead construction firm in the Pacific Bell Park project. HHN joins Kajima and the previously announced HOK Sport Facilities Group, the primary architects of the ballpark, in leading the design and construction efforts.

Huber, Hunt and Nichols has constructed or is in the process of constructing more than 35 sports facilities throughout the United States, including Jacobs Field in Cleveland, Banc One Park in Phoenix, Miller Park in Milwaukee, the new Mariners ballpark in Seattle, Joe Robbie Stadium in Miami and the San Jose Arena. It also has been involved in numerous San Francisco projects, such as the recently completed New Main Library, the renovation of City Hall and the construction of the new Civic Center Courthouse.

"Huber, Hunt and Nichols is delighted to be a part of the Pacific Bell Park project and we look forward to working with the Giants, Kajima and the other members of the project team to build what will truly be a jewel of a ballpark," said Robert Aylesworth, executive vice president of Huber, Hunt and Nichols.

Larry Mazzola, president of the San Francisco Building Trades Council and Business Manager of Plumbers Union, Local 38, commended the Giants' selection of Huber, Hunt and Nichols as the lead general contractor on the project.

"This is a very exciting project for all San Franciscans, but it is particularly important for the more than 3,655 construction workers who will be employed during the construction of Pacific Bell Park," said Mazzola. "The San Francisco Building Trades Council looks forward to working with Huber, Hunt and Nichols and the Giants to develop a project agreement which meets the needs of the entire San Francisco community."

The Giants also restated its commitment to implementing an affirmative action program which utilizes individuals and businesses from the local community in all phases of the Pacific Bell project. To assist in that effort, the Giants have retained James Jefferson and The Jefferson Co. to work with the Giants and its consultants to implement an effective equal opportunity program that retains minority-owned and women-owned businesses as joint venture participants and key subcontractors and meets the M/WBE goals established by the San Francisco Redevelopment Agency.

The Jefferson Co. offers recognized expertise in developing such minority and women business utilization programs. Most recently the firm created programs for the highly successful Costco Store, Mission Bay and Executive Park.

"We are very excited about the affirmative action program we have developed with The Jefferson Company and we are committed to assembling a team of the highest caliber to make Pacific Bell Park an unprecedented success," said Magowan.

CONTACT: San Francisco Giants

Staci Walters, 415/330-2714