Don’t look now but the numbers are already going wonky with the Dr. McHealthy Fruit & Nut Complex in the City of Looms. The muni bond market has softened considerably in the past week, with rates jumping from 25 to 50 basis points pretty much across the board for solid-gold, voter-approved AAA general obligation bonds.
The project needs to sell $95m. in tax-increment financed bonds to start building infrastructure. Bond traders are not exactly eager to take on this sort of offering, or rather, they are demanding much higher interest rates than the project’s backers and bankers assumed would be the case. Another pricing for perfection problem, you see.
Officials say they’ll try again next month, but there is no reason to assume the market will be better then, either. Stay tuned.
