Last month, Officials with LUS and Lafayette Consolidated Government met with bond rating agencies Moody's and Standard & Poor's in New York to give a detailed presentation on the fiber project. LUS Director Terry Huval fielded a number of questions from the agencies on everything from state law and lawsuits affecting the project to the overall financial health of LUS, LCG, and the regional economy.
Louisiana state law provides LUS can only indirectly back the bonds on the project, through fair market loans to its new communications division. "We're plowing through a lot of new territory here," Huval says. "I don't know if there's been very many entities that have issued bonds for a communications system like this. So there's a lot of attention being given here."
At the end of the day, 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 utility bond rating of A and A1. But with bond insurance, purchased through XL Capital, LUS will still receive a AAA rating with investors. That translates into an interest rate slightly under 5 percent for the approximately $110.45 million in bonds LUS is selling for the project.
"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. "They commented favorably about our commitment and vision on the project," Huval says. "I think they also saw that this could be a very powerful thing for a community to be able to do."
LUS' bond sale faced multiple lawsuits related to the public utility's ability to back up the sale on behalf of its communications start-up. Earlier this year, the state Supreme Court ruled in favor of LUS on the issue, allowing it to move forward with its bond sale. LUS first introduced its initiative to operate a citywide network offering phone, cable and high-speed internet to residents in 2004. City voters approved a measure to allow LUS the ability to issue up to $125 million in bonds for the project nearly two years ago, in July 2005. Huval says the legal delays, brought both by BellSouth and mysterious resident-opponent Elizabeth Naquin, have unintentionally helped the project in some ways. "Technology-wise and know-how wise, we now have a number of advantages as a result of the delays," Huval says. "There's a lot more experience that folks have and the engineering company we brought in, Atlantic Engineering, is already providing us a lot of insight."
This summer, LUS will work on preparing a bid package for construction of the project, which should be under way before the end of the year. LUS hopes to begin serving its first customers starting in 2009.
The Board of Elementary and Secondary Education is considering whether to get involved in a lawsuit against Gov. Bobby Jindal for his attempts to undermine use of the Common Core education standards in Louisiana's public schools.
The latest meeting of a south Louisiana flood board that stirred political turmoil with a lawsuit against the oil and gas industry is taking place amid uncertainty over the future of the lawsuit — and the board's own membership.
The photos taken nearly a mile under the Gulf of Mexico are so clear that small holes are visible in a lifeboat that may have gone down or been scuttled when a passenger ship was sunk by a Nazi submarine in 1942.
Advocate columnist and Jindal shill Quin Hillyer has been against the New Orleans levee board lawsuit from day one, but a recent piece targeting author/activist John Barry prompted the perfect rebuttal from the board’s former vice-president, who takes Hillyer to task on just about every distorted claim he’s made on the issue.
Thursday's Blogs from the Bog!
Pat Bowlen steps down; typhoon caused Taiwan plane crash; Arizona execution botched and more national and international news for Thursday, July 24, 2014.
Thousands of people who bought health insurance through the marketplace created by the federal health care overhaul face price hikes next year that could top 10 percent.
Louisiana fell one spot in an annual national ranking of child well-being that looks at poverty, education and health access.
A federal judge has decided he doesn't need to hear more arguments in the case of a gay couple who want a Louisiana marriage license.
Saints again bring playoff aspirations into 2014 campaign.
New details in the case against the man arrested for last week’s bomb threat and bank robbery has surfaced, including a MidSouth Bank surveillance video showing the alleged suspect attempt an early-morning bank robbery.
Parents and teachers who support the Common Core education standards sued Gov. Bobby Jindal Tuesday over his actions against the multi-state standards, accusing him of illegally meddling in education policy.
An arrest was announced this morning in connection with last week’s bomb scare at UL Lafayette.
Attorneys, judges and others interviewed by LaPolitics expect 15 to 20 district judge races this year.
"I feel like I'm under siege," an attorney said recently over drinks at Galatoire's Bistro in Baton Rouge. "We all do. Every time I turn around somebody wants a check. District attorney races. The judges. They're killing us."
As a requirement for running for Congress in the 6th District, former Gov. Edwin Edwards has filed his financial disclosure statement with the U.S. House showing his income in 2013 totaling $242,787.
Unlike those swindled by Bernie Madoff, the victims of Texas businessman Robert Allen Stanford’s Ponzi scheme won’t be getting any relief from the Securities Investor Protection Corp.’s emergency fund after a recent appellate court ruling.
The legal challenge is part of a continuing struggle over Common Core, which has become controversial since the Board of Elementary and Secondary Education adopted the standards in 2010.
The lone Democrat to announce he's running for governor, state Rep. John Bel Edwards, criticized Republican Gov. Bobby Jindal's budgeting tactics as "running the state like a big Ponzi scheme."
State police have arrested a 42-year-old Kaplan man in the July 7 hit and run fatality crash that killed a bicyclist on Louisiana Highway 92 near Milton.
Republican U.S. Rep. Bill Cassidy has picked up support for his U.S. Senate campaign from a former GOP competitor.
Lisa Hargis Smith lived a mysterious life as seen with her death earlier this month and its impact on the community of those who knew her, whether as a star student in Lafayette High’s class of ‘69, or later as a woman struggling with homelessness and mental illness.
Attorney Valerie Gotch Garrett will announce on Tuesday that she plans to run for the Division E seat of the 15th Judicial District Court.
Back in 2012, three Baton Rouge attorneys came to the aid of several disgruntled police officers with a high-profile lawsuit against the Lafayette Police chief and a number of higher-ups in city-parish government, but in a federal courtroom Thursday, their claims of conspiracy coupled with a lack of evidence backfired and the case was dismissed.
Gov. Bobby Jindal's administration intends to rework how it pays the private managed care networks that provide health services to two-thirds of Louisiana's Medicaid patients.