Moody's rates debt for Kentucky telecom P3

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Moody's rates debt for Kentucky telecom P3

Moody's Investors Service has assigned a Baa2 rating  to senior revenue bonds for the the Kentucky telecom public private partnership (P3) project in USA.

The senior revenue bonds consisting of US$230 million of tax-exempt senior revenue bonds series 2015A and US$57 million of taxable senior revenue bonds series 2015B bonds, which will be privately placed and divided into a US$19 million series 2015B-1 that is issued and purchased at financial close and a US$38 million series 2015B-2 that will be issued on a deferred basis and purchased by Allianz Life Insurance Company of North America under a forward bond purchase agreement.

The project involves the development of a High-speed broadband network in Kentucky. The 3,209 mile statewide middle-mile fiber optic network will initially connect 1,098 government user sites including nodes.

The fiber will be in all 120 counties and it is planned that Eastern Kentucky will be the first priority area. It is expected that more than 100 key properties will be connected, including universities, state government buildings and community and technical colleges.

The project includes the design, development, operation and maintenance of the new facilities for a period of 30 years.

Macquarie and its partner First Solutions are the project's sponsors. Fujitsu Network Communications Inc. will be responsible for network design, equipment, operations and maintenance and refresh, Black & Veatch will be responsible for the design-build of the outside plant and Bowlin Group, a local Kentucky wire and fiber-line contractor based in Walton, will be responsible for the construction services.

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