Friday, May 11, 2007

"LUS bonds up to council"

Kevin Blanchard over at the Advocate posts a background update and a timeline to the ongoing saga of the fiber bond sale. He points out that the Naquin lawsuit was filed to prevent the bond sale and that Lafayette's victory at the state Supreme Court cleared the way for the sale.

The following quotes neatly establish the timeline (date inclusions mine):
  • [5/15/07] The City-Parish Council is scheduled Tuesday to introduce an ordinance that will be presented to the bond markets as part of a proposal for LUS to borrow up to $125 million...
  • [5/23-24/07] Lafayette and LUS officials will be in New York in two weeks to meet with representatives of the bond market...
  • [6/11/07] On June 11, LUS will get an official proposal from the bond market that includes things such as proposed interest rate and other terms of the bonds...
  • [6/12/07] The next day, the council will hold a special meeting to plug those specifics into the ordinance it would introduce Tuesday.
  • [by 6/30/07] If all goes well, LUS could obtain funding by the end of June, Lalumia said.
  • [8/1/07] If the bonds are issued by the end of June, that would place that estimate of having its first customer by October 2008.
The story clarifies (again) the way the bond funding will work, detailing the way it will be paid off from user fees and how the expected shortfall during the start-up years will be handled. In line with the original feasibility plan, they expect to start turning a profit in three years.

Worth the read....

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