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.
Local and state agents Thursday night raided The Keg, the popular college bar located in the area known as The Strip, leading to the (at least) temporary closure of the venue.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, April 18, 2014:
Friday's Blogs from the Bog!
Time and time again, the Lafayette Parish School Board shows an overwhelming tendency toward idiocy, but Wednesday night’s contentious discussion over Northside High School’s teen mother program tops the list of dumb discussions.
“The accomplishment of this goal within the next ten years is not only critical for the region to effectively compete with other regions for residents and businesses, but also to provide an amenity for everyone in Acadiana to enjoy.”
Education Superintendent John White says a continued push to try to keep Louisiana from using tests associated with the Common Core education standards are creating "a state of chaos" for public school teachers.
Gov. Bobby Jindal's plan to use $210 million in surplus and one-time money to help balance next year's budget received the backing Thursday of the State Bond Commission, support that was needed for the maneuver to work.
State wildlife and fisheries agents have arrested a 39-year-old man accused of stealing crawfish.
An East Feliciana Parish lawmaker has jettisoned his proposal to make it harder for a condemned prisoner to appeal a death sentence.
Senators advanced a proposal Wednesday that would let the governor remove New Orleans-area levee board members for violating what he considers to be public policy, despite concerns it would introduce political meddling into state flood protection.
The Lafayette City-Parish Council on Tuesday will vote on a resolution that if approved would clear the way for a December ballot proposition asking voters to approve a 1-cent sales tax parishwide to help fund the construction of a new terminal at Lafayette Regional Airport.
Just days before the fourth anniversary of the 2010 Deepwater Horizon disaster and oil spill, the Coast Guard has moved cleanup of Louisiana's coast to a new phase, allowing BP to end its "active" efforts in the area.
Legislators still must leave their guns at the door of the Louisiana Capitol.
Sen. Fred Mills may have an "R" behind his name, but his actions in the Louisiana Legislature transcend the established boundaries of his party.
The Louisiana House overwhelmingly rejected a repeal of the state's unconstitutional anti-sodomy law Tuesday.
The Louisiana Senate sided with Gov. Bobby Jindal and the oil industry Tuesday, agreeing to void a lawsuit that a south Louisiana flood board filed against more than 90 oil and gas companies for coastal damage.
Acadian rep notifies would-be supporters that an April 25 fundraiser for the embattled U.S. rep won’t go on as planned.
While it isn’t all too unusual for public bodies to have hired security present during meetings, the LPSB’s push to do so is arguably a response to the antics of one board member.
“I’m running. Why would I be raising all this money? Just to have to return it to people?”
With incumbent U.S. Sen. Mary Landrieu watching from afar, and with a united Democratic Party in her corner, the fight to get the GOP officially behind Congressman Bill Cassidy is gaining just as much momentum as it is hushed controversy.
15th Judicial District Judge Durwood Conque has announced that he will not seek re-election after 27 years on the bench.
The controversial standardized tests are set to be used in third-grade through eighth-grade public school classrooms next year.
The Louisiana Senate has agreed to prohibit unmanned aircraft from flying over chemical plants, water treatment systems, telecommunications networks and other items considered "critical infrastructure" in Louisiana.
It didn’t take long for KATC TV 3 to jump all over the news of a dead body found in Girard Park, but in its rush to produce headlines, the local TV station got sloppy.
An unholy trinity of civil-society upheavalers whose first names are not Conner, Tanner or Logan are facing charges in Eunice.