Arena Authority To Hear More Funding Options

by Gabe Bullard on July 28, 2008

With funding for Louisville’s downtown arena in question, the arena authority will meet Tuesday to explore new financing options.

$360 million in bonds for the project were postponed last Thursday after it became more likely that the bonds’ issuer, Assured Guaranty, would have its credit rating downgraded.

Tuesday, Goldman Sachs will present the authority with several different ways to back the bonds, including construction loans and line-of credit financing. But, authority chairman Jim Host says Assured could still issue the bonds.

“We still have them as one of the alternatives, but we want to look at other possibilities before we make a final decision on Assured,” says Host. “They’ve been great to work with but what we don’t need at this point is a downgrade.”

Host says if Assured isn’t downgraded soon, the authority will likely stay with them for the project.

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