Arena Authority Postpones Sale of Bonds

by scrosby on July 23, 2008

The Louisville Arena Authority has postponed the sale of 360-million dollars in bonds. The check presentation had been set for today.

The special meeting was delayed when Moody’s credit rating agency put the company insuring the bonds on credit watch – meaning its credit rating could be downgraded. That temporarily halted the closing of the deal for the downtown arena project. Arena Authority Chairman Jim Host says he remains confident in the bond insurer – Assured Guaranty.

“The issue – I think – is the fact that Moody’s has a problem with the whole insure industry. It doesn’t have to do with Assured as much as it has to do with the industry,” says Host.

Host says bond underwriter Goldman Sachs has confidence the deal will go through and another meeting has been set for next Wednesday. If that doesn’t happen, Host says they have backup plans, but would not disclose them.

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