City Council Mulls BeltLine Bond Sale

By Odette Yousef

Atlanta, GA – After the nation's tight credit market forced a delay, the Atlanta BeltLine has finally found investors for its first bond issuance. Pending city council approval today, Beltline officials hope to close the $64 million deal with Wachovia and SunTrust Banks this week.

City Council previously authorized up to $120 million in bonds, but Beltline president Terri Montague says the project won't issue that full amount until the credit market loosens up.

MONTAGUE: Our strategy is to issue as little as is absolutely necessary right now, at as favorable a rate as we can, while respecting all of the obligations in the legislation, and so we are issuing only enough to cover those minimal obligations.

Project officials were under pressure because a $45 million loan on the northeast corridor expires Friday.

This issuance is at a 6.2% interest rate, but Montague expects to refinance that, and issue the remainder of the $120 million, at a rate more favorable to the city in July.