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November 25, 2009
Arena bonds authorized, underwriter Goldman confident, but questions remain about rating, insurance, market
Atlantic Yards Report
The news at the meeting yesterday of the Brooklyn Arena Local Development Corporation (BALDC) was not that the special-purpose LDC was going to approve bonds for the arena, but the numbers and terms surrounding the bonds.
And several important aspects of the bond sale remain unresolved.
While the Empire State Development Corporation (ESDC) said in a statement that it had "secured investment-grade ratings" for the arena bonds, the Bond Buyer checked with Standard & Poor's analyst Jodi Hecht, who said no public rating had been made, leading ESDC spokesman Warner Johnston to acknowledge that the ratings had been "tentatively secured." Nor has an interest rate been set.
Also, the bonds do not yet have insurance, a factor that adds a significant safety factor but adds to the cost. Officials of both the BALDC and underwriter Goldman Sachs said that such a "credit enhancement" was under discussion.
Check out the rest of the article, for reporting on the followup questions from the media, including Ted Phillips of Bond Buyer and Matthew Schuerman of from WNYC News Radio.
Posted by lumi at November 25, 2009 6:21 AM