Thursday, June 11, 2009

Bond Reserve Convenants

More of our highlights from a News-Press forum on the subject of Water utilities in Cape Coral…

The reserve covenants (on the $310 Million in water bonds) are in violation, triggering bond rating downgrades, thus raising the yield & payments.

The city will be hard pressed to find any financing to roll over the debt, especially after California defaults in July.

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