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.
That’s what Lafayette Parish has obtained in Pentagon surplus since 2006.
Qualifying continues through Friday.
The political tilt of the Senate during President Barack Obama's final two years in office is likely to hinge on a handful of female contenders in tight and costly races.
A former BP executive will be allowed to travel to the United Kingdom later this month while he awaits trial on charges relating to an investigation of the 2010 Gulf oil spill.
South Koreans defend ramen; special forces had failed to find James Foley; Vegas lures LGBT tourists and more national and international news for Thursday, August 21, 2014.
Thursday's Blogs from the Bog!
Friends and family will celebrate Spider's life in September.
Saints safety Jairus Byrd has rarely been so eager to hit and be hit, if only to reassure himself that his surgically repaired back is as healed as doctors believe.
Jindal privatized nearly all the LSU hospitals without waiting for federal officials to sign off on financing arrangements that rely on millions of federal Medicaid dollars.
U.S. Sen. Mary Landrieu and her main Republican challenger, Congressman Bill Cassidy, verbally sparred as they officially signed up on the opening day of qualifying for Louisiana's November election.
Superintendent tells crowd he'd just emerged from a four-hour meeting with the attorney hired to investigate him.
The start of the three-day qualifying period for November’s elections has so far yielded 10 official bids and one new announcement from candidates seeking a seat on the school board.
It’s been just over four months since attorney Barry Domingue committed suicide the morning before he was to stand trial for a second day in the federal Curious Goods case, leaving his fellow attorney/co-defendant Daniel Stanford with a temporary mistrial and awaiting his day in court.
Candidates for Louisiana's Nov. 4 election must officially sign up for the ballot this week.
Gov. Bobby Jindal's effort to derail Louisiana's use of the Common Core education standards was halted Tuesday by a state judge who said the governor's actions were harmful to parents, teachers and students.
New Orleans Saints running back Mark Ingram isn't letting a humbling start to his pro career lower his opinion of what he can still accomplish in the NFL.
Visualize Lafayette’s next great thing from 3,000 feet.
A Baton Rouge judge issued a temporary restraining order Monday against enforcing a law that prohibits anyone 70 or older from running for justice of the peace or constable.
Gov. Bobby Jindal believes the last-minute passage of a pension hike for his state police superintendent, Col. Mike Edmonson, was improperly handled, according to the governor's office.
As the courts hash out the attempts to preserve and shelve Common Core in Louisiana, a group of six state lawmakers are planning an Aug. 22 trip to Oklahoma to meet with their counterparts and strategize for the 2015 regular session.
While hopes are high for turnout this fall, a new report from the Center for the Study of the American Electorate suggests that Louisiana's midterm face-offs may amount to nothing special in terms of votes cast.
The attorney hired by the Lafayette Parish School Board for a special investigation of Superintendent Pat Cooper has submitted his final report, though it may be another week before the findings are made public.
The Tea Party of Louisiana is calling Sen. David Vitter a “turncoat” for his newfound embrace of Common Core educational standards.
An annual report evaluating Gov. Bobby Jindal's privatization of Medicaid lacked important financial information and presented rosy performance reviews not corroborated by data, according to a review released Monday.
Lafayette attorney Michelle Meaux-Breaux has announced her plans to seek the Division E seat for judge in the 15th Judicial District.