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FOR IMMEDIATE RELEASE August 17, 2006
CITY WILL SELL $280 MILLION IN WASTEWATER REVENUE BONDS
The City and
The sale of the Series 2006 A, B and C bonds will finance capital improvements to the City’s wastewater system and generate significant savings for the City and the Department of Environmental Services by refinancing outstanding debt. (Municipalities, states and businesses borrow money by selling bonds. The purchasers are repaid with interest, using future revenues. In this case, those revenues are the sewer fees that the City collects.)
The interest on these particular bonds will be exempt from state and federal taxes. Maturity periods will range from five to 30 years. The bonds are scheduled to be sold as follows:
· $196,505,000 Series 2006A
· $27,795,000 Series 2006B
· $55,450,000 Series 2006C
UBS Securities LLC is the lead underwriter for this sale. Also participating are 11 selling group members listed below. Bond insurance is expected for this financing.
Expected insured ratings from the top three rating agencies are Moody’s Aaa; Standard & Poor’s AAA; Fitch AAA. Expected underlying ratings are: Moody’s Aa3; Standard & Poor’s AA–; Fitch AA–.
The bonds will be offered to retail accounts through a pre-sale retail order period on August 21, with an additional opportunity to place orders during the final sale on August 22.
Each investor should read the entire Series 2006A, B & C Preliminary Official Statement prior to making any investment decisions regarding these issues. For further information or to obtain a copy of the preliminary official statement, please contact:
UBS Financial Services, Inc.
Charles Schwab & Co.
(800) 333-6864 ext. 88
Merrill Lynch & Co.
Wachovia Bank, National Association
Wedbush Morgan Securities
Mary Pat Waterhouse, Director, Department of Budget and Finance, 523-4617
Edlyn Taniguchi, Chief of Treasury, 527-5673
|Thursday, August 17, 2006|