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City and Sacramento Kings reach deal to refinance 1997 loan

The city of Sacramento and Kings basketball team this week announced they have come to terms on a key unresolved element of the 2014 deal to build a new arena downtown – the refinancing of a $73 million city loan to the Kings in 1997.

The agreement, not yet final, is for a revamped loan of $50 million, the amount the Kings still owe on the current loan. The Kings, however, are expected to pay at least $20 million to the city prior to a city bond sale, reducing the new loan to $30 million. The team also will put up six properties as collateral, including its former Natomas arena site.