FOR IMMEDIATE RELEASE
Wednesday, August 3, 2011
Contact: Karen Whichard, 704-336-4793
Charlotte-Mecklenburg Utilities has refinanced $114 million in revenue bond debt that will generate $18 million in present value savings.
According to Charlotte Chief Financial Officer Greg Gaskins, the refinancing will reduce the interest cost on the bonds outstanding by 16.4%, impacting potential rate adjustments this year and in the future.
“The $18 million savings will be realized over the life of the bonds with $3 million in savings in both FY2012 and FY2013. The remaining savings are spread evenly over the years that follow until all the bonds are repaid in FY2025.” he said. “This helps the utility keep cost down as CMUD transitions from a time of high growth to lower growth and continues to maintain quality service.”
The AAA rated bonds were underwritten by Bank of America Merrill Lynch and Wells Fargo Securities, with the sale officially closing on August 3.
CMUD serves an estimated population of 788,190, has a water treatment capacity of 242 million gallons per day and a wastewater treatment capacity of 123 million gallons per day. With more than 8,000 miles of water and sewer pipes, the utility serves the City of Charlotte as well as the towns of Cornelius, Huntersville, Davidson, Mint Hill, Matthews and Pineville.
For more information on Charlotte-Mecklenburg Utilities, visit www.cmutilities.com