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9.27.06 M.U.D. approves sale of $96 million in bonds The M.U.D. Board of Directors today approved the sale of $96 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. Citigroup Global Markets Inc. provided the winning bid with a total interest cost of 4.3751 percent and a total interest expense of $71.91 million. The auction was held on the District's financial advisor D.A. Davidson's website, DavidsonBondAuction.com. "We are very pleased with the competitiveness of the auction and the final interest rate," said Tom Wurtz, president. Five companies submitted bids. The bonds are the second of two issues sold to fund the new water treatment plant and wellfield. The District sold $100 million in bonds February 8 of this year, at a total interest cost of 4.3393 percent and a total interest expense of $69.93 million. 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 rating. Moody's Investor Service provided an Aa2 rating, which is an upgraded rating from the Aa3 rating for the February issuance. Moody's also upgraded the February sale to an Aa2 rating.
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