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BOND ISSUES
On April 26, 2006, the Cascade Water Alliance issued Water System
Revenue Bonds, 2006 (the Bonds) for $55,230,000. Underwritten by
Lehman Brothers, the Bonds were rated "Aaa" by Moody's
Investors Service and "AAA" by Standard & Poor's Rating
Service (S&P), based on bond insurance provided by Ambac Assurance. Moody’s
and S&P assigned underlying ratings (without insurance) of "Aa3"
and "AA-" respectively. Both ratings indicate a top quality,
very strong credit. The average coupon (weighted average of all
the interest rates or average interest rate paid by Cascade) is
4.94%.
The Bonds were issued to pay the cost of carrying out a portion
of Cascade's capital program, which is described in the Capital
Program Coordination, Management
and Finance Plan (the Finance Plan). The proceeds of the Bonds
will be used to finance transmission and treatment facility planning
and design, make payments to the City of Tacoma under the wholesale
water purchase agreement, make payments to Puget Sound Energy, Inc.
relating to acquisition of assets at lake Tapps, and repay a loan
from the Sammamish Plateau Water & Sewer District (used to purchase
the Bellevue/Issaquah Regional Transmission Pipeline).
A detailed description of the Bonds is available in the Official
Statement.
Click Here
To Download the Finance Plan
Click Here
To Download the Official Statement
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