Refinancing of UTPIA bonds

This very interesting article about the refinancing of UTOPIA bonds is very interesting to me. If the article is correct, UTOPIA will sell 189 million in bonds, repay 135 million in existing bond debt and receive 20 million for new network construction. I am not a finance guy, but 189 million minus 135 million minus 20 million is 34 million. If that is going for fees to lawyers and financiers, we need to find a new way to finance municipal networks! $34 million is 18 percent of the total. If one figures $3000 per house to hook up to a fiber network (Utopia’s incremental cost is probably less), those fees would cover costs to hook up over 11,000 homes.

1 thought on “Refinancing of UTPIA bonds

  1. That’s incorrect. $21M will be used to pay off the RUS money loaned to date and $11M will be used to pay off work authorized by the RUS that was never reimbursed. The remaining money will be used for capitalized interest during the first two years.

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