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2.8.06 M.U.D. approves sale of $100 million in bonds The M.U.D. Board of Directors today approved the sale of $100 million in tax exempt, fixed rate water revenue bonds at a special board meeting. The 25-year bonds will help fund the Platte West Project. The bonds were offered during a 30-minute internet auction earlier today. Merrill Lynch provided the winning bid with a total interest cost of 4.3393 percent and a total interest expense of $69.93 million. The auction was held on the District's financial advisor Kirkpatrick Pettis' website, KPauction.com. The bonds are the first of two issues to be sold to fund the new water treatment plant and wellfield. The District will sell an estimated $100 million in additional bonds within the next year, said Ron Bucher, senior vice-president, Administration. The District will use its water construction fund and general water revenues to pay the approximately $150 million balance to fund the remainder of the project. Total cost of the project is estimated at $352 million. Prior to the sale of the bonds, the District obtained ratings from two rating agencies. Standard and Poor's gave an AAA initial rating and Moody's Investor Service provided an Aa3. The last time the District sold bonds was more than 30 years ago for water system improvements and upgrades. The District issued $20 million in water revenue bonds in November 1972 to pay off several five-year notes and fund projects at the Florence Water Treatment Plant, Walnut Hill Pumping Station, Rainwood Pumping Station and Reservoir and Harney Reservoir.
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