Connector 2000 lacks funds to make Jan. 1 bond debt service payments

By Caroline Salls

Pittsburgh, Jan. 12 - Connector 2000 Association, Inc. was unable to make debt service payments due Jan. 1 on its senior and subordinate toll road revenue bonds, according to a notice to bondholders from trustee U.S. Bank NA.

The company said it did not collect enough toll revenues on its Southern Connector to pay the debt service.

According to a Connector 2000 briefing, the company has never paid any debt service on the bonds, and an event of default exists under the bond indentures.

The company said it is negotiating a bond debt restructuring with the trustee, the South Carolina Department of Transportation and some holders of large blocks of the bonds.

As a result of the payment default, Standard & Poor's has informed the company that it will reduce the ratings on the series 1998A bonds and series 1998B bonds to D from C-. The company's series 1998C bonds have never been rated.

In addition, Connector 2000 said an eight-month closure of the northbound lanes of I-385 in Laurens County, S.C., is expected to reduce traffic and revenue on the Southern Connector.

Connector 2000 is a South Carolina non-profit public benefit corporation.

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