Bond Debt Picture Developes

The current agenda for tonight’s meeting includes the updated slides. There is one bullet point on the very bottom of page 4 that is not correct. It was an informative meeting, and I would urge everyone with an interest in knowing what is happening for the largest assumption of village debt ever to listen to the MP3 podcast file when it is posted.

Bottom line, DG’s credit (AA+) and the time frame of the fixed bonds makes it still OK to do. Allan Ambrose answered a peppering of questions from council and audience, and presented the PowerPoint slides.

Cost to issue will run about 1%. I do not know how that compares historically. Because of how upset the financial markets are, there is not opportunity to refinance (”re-funding”) other debt and save some money.Next stop is onto a workshop agenda where any additional information from Harris Bank can be brought forward along with any other questions, and a more certain time fame hashed out.If you listen to the audio, you will notice a fairly inquisitive council, and that Sandack gives everyone who wants a chance to speak and keeps things moving along. council connection Martin Tully made some excellent summary points (thinly disguised as questions) regarding the three separately treated bond issuances-this year, 2012, and 2015, and that they are really talking about just the one single issue for here and now.

I got the impression DG is in as much of a sweet spot as currently exists. We do not have to consider insurance, bids are really tightly grouped right now so Mr. Ambrose and Harris Bank will have a pretty solid idea of where things will sort out when the time comes (which will be soon), the fixed rate and the long time frame make it more sellable. Our rating is set by S&P, and accepted by every likely bidder.


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