EPB will not obtain $230 million in bonds today to finance its fiber-to-the-home plan.
The utility is delaying the bond purchase for about two weeks because of a cable industry lawsuit, EPB spokeswoman Lacie Newton said. Utility officials are updating information to provide to bond investors because of a court hearing scheduled for March 7.
The Tennessee Cable Telecommunications Agency is suing EPB to stop the utility from offering residential video, telephone and Internet service. Both parties filed new motions last Friday in the lawsuit.
EPB officials also believe they can obtain better financing terms by waiting two weeks, Ms. Newton said, because several other municipalities are seeking bonds, which could make EPB’s bonds more attractive to investors.
The Chattanooga City Council tonight is expected to approve a motion allowing EPB to borrow $60 million in electric system revenue to use on the telecom plan.
Read tomorrow’s Chattanooga Times Free Press for complete coverage.