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Louisville arena financing plan may have to change

July 25, 2008 @ 11:04 AM

Herald-Dispatch.com

LOUISVILLE, Ky. (AP) — The Louisville Arena Authority may have to put together a new financial game plan to pay for the $249 million arena planned for downtown Louisville.


Authority chairman Jim Host said Thursday that using bonds to pay for the arena is “on hold” amid turmoil in the credit markets. The latest development follows a move by Moody’s Investors Service to consider downgrading its opinion of the financial strength of the arena’s bond insurer, Assured Guaranty.


Such a move could add more than $60 million to the project’s total debt cost.


Host said officials from investment bank Goldman Sachs are expected in Louisville early next week to discuss possible financing scenarios. Host said a new plan could be in place as early as the middle of next week.