Bond Refinancing Reduces Costs
March 23, 2016
In their February Board meeting the Acton Municipal Utility District (AMUD) Board of Directors approved an advanced refunding of AMUD’s 2008 bonds, a move which is netting an approximate 12% savings in debt service costs over the remaining 12 year payment schedule. As with previous bond issues, the Board took advantage of the low interest rate bond market by refunding the existing debt at lower rates thereby reducing costs for the District and its customers.
An important factor in the District’s success in the bond market is its strong and stable AA- rating issued by Standard & Poors, making it one of the highest rated MUD’s in the State. With the guidance and assistance of financial advisors Mark McLiney and Andrew Friedman of SAMCO Capital Markets, Inc. the refunding was accomplished through a Private Placement with Branch Banking and Trust Company (BB&T) at a fixed interest rate of 2.29%. This will result in a savings of about $556,000 over the term of the loan, which closes on March 23rd.
Proceeds from the original $6 million 2008 bond issue were used to fund numerous water and wastewater system improvements.
“Our five (5) member Board of Directors bring diverse and valuable background experience to the table in governing the affairs of the District” states Richard English, General Manager. “In addition, AMUD has highly trained Staff and consultants to provide feedback as needed on Board deliberations. Together we work as a team to provide dependable high quality water and wastewater service for our customers as efficiently as possible.”
The Board consists of:
Don Cleveland President
Dalton Gilbert Vice President
Ron Cotton Secretary
J C Wright Treasurer
John Featherston Assistant Secretary/Treasurer