Thursday, October 29, 2009

ESDC has a planned bond sale on the week of November 16 (before any court decision comes down)

Not only is the next Empire State Development Corporation (ESDC) meeting on November 19, the week of November 16 is when the ESDC will be issuing bonds, including (apparently) bonds for the Atlantic Yards arena, Reuters reports:
Frances Walton, chief financial officer of the Empire State Development Corporation, told reporters after a Citizens Budget Commission conference that she did not expect lawsuits filed by opponents of the multibillion dollar Atlantic Yards project would block the debt issue by a local development corporation.

"The expectation is that they will be issued," she said. This would not be first time that bonds have been issued despite "legal challenges," Walton said.

"We have begun discussions with ratings agencies," she said.
In other words, they're not waiting for the resolution of the eminent domain case, nor do they think any other lawsuits could stymie the project. The driver is a December 31 IRS deadline.

Bond buyers and the bond insurance company, however, had better calculate some risk, as Michael D.D. White pointed out.

1 comment:

  1. call me crazy, but my reading of the reuters article is that bond issues for atlantic yards & the world trade center projects are NOT part of the $1.7 billion mid-november bond sale

    if you re-read the headline, as well as the first paragraph of the article, i think you'll come to the same conclusion that i did

    it appears that the esdc needs to "finalize" key details - debt rating, insurance coverage, etc - of the ay bonds, BEFORE it can set a date for their sale

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