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Article: Deal in Focus: Erie County, Control Board Reach Compromise, Sparking 'Mirror Debt'.
- Article from:
- The Bond Buyer
- Article date:
- February 25, 2008
- Author:
CopyrightCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When Erie County, N.Y., needed to raise funds for capital projects last year, it first had to go to the Erie County Fiscal Stability Authority for permission.
The authority said no, setting off a struggle for control of the county's ability to issue debt that both sides have said is nearing a resolution that could bring $36.9 million of bonds to the market soon.
Under a compromise agreement hammered out over the past three months, the FSA plans to issue 30-year bonds on its credit while the county will privately place "mirror bonds" for the same par with the authority. If the county gets upgrades from two rating agencies to single A, then the authority's ...