Tuesday, June 12, 2007

The INDsider: LUS sells fiber bonds

AllRight!!!!!

The bonds to build Lafayette's Fiber network are being sold as we speak. LUS is moving ahead aggressively to get their money and to get going.

The scoop from the Independent Blog:

LUS’ long-awaited bond sale for its fiber-to-the-home project should be nearly wrapped up by the end of the day. The bonds were priced and put on the market yesterday and today.
On bond rating and pricing:
..Standard and Poor’s gave the project an A- rating and Moody’s awarded an A2. Both ratings are only one step below LUS’ regular bond rating of A and A1. But with bond insurance, purchased through XL Capital, LUS still receives a AAA rating with investors. This all translates into an interest rate slightly under 5 percent for the $110.45 million in bonds LUS is selling for the project. In its original feasibility study, LUS had projected having an interest rate of 5 1/2 percent.

“We were very pleased with those results,” Huval says. “We’ve got the best rating we could have hoped to have gotten out of this.” He adds that the bond agencies spoke highly of both LUS’ ability to handle large projects, such as the two new generating plants that were built on time and on budget, as well as the merits of the fiber initiative.
Those are great ratings and the interest rates are within the plan's guidelines. Messing up the bond issue was the last, best hope of the incumbent opposition to inflict a little more pain on Lafayette before the build begins. That attempt failed. (But we should be mindful that the delay has and will cost the people of Lafayette real money in addition to the original offense of standing in our way. Holding a grudge, for at least awhile, is appropriate.)

—The train is picking up speed as it leaves the station. Alllll Aboard!

Celebrate!!

Update 6/13/07: This week's issue of the Independent is out today and contains a longer version of this story.

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