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October
8, 2003 On October 7, 2003 WaterOne held a competitive public sale for $29,295,000 of 2003 Bonds, which will refund the District’s outstanding 1993 Bonds. Four bids were received from underwriters. The Water District Board awarded sale of the 2003 Bonds to UBS Financial Services , Inc. who submitted the best bid with an effective interest rate (True Interest Cost method) of 3.15%. The 3.15% interest rate on the 2003 Bonds will replace the higher interest rates on the outstanding 1993 Bonds of 5.22%. The Water District pays lower interest rates on its bonds because of exceptionally high bond ratings, which results in savings to the District’s ratepayers. Standard & Poor’s Corporation has confirmed it’s highest rating “AAA” on WaterOne’s senior parity bonds including the 2003 Bonds and Moody’s Investors Service, Inc. upgraded WaterOne’s rating to their highest rating of “Aaa”. WaterOne is now one of only three municipal water utilities in the country holding this “AAA/Aaa” natural rating (unenhanced by insurance) for revenue bonds. This bond refunding, at the lower interest rate, will save WaterOne’s ratepayers more than $3.7 million in interest costs over the next 12 years. |