Bonds repay debt, fund projects

OKANOGAN - Okanogan County PUD bond sales closed Nov. 19 and $40 million were deposited in the district’s account.

 

The district’s bonds had more than enough subscribers looking to invest.

 

The bond issue was well received by a broad group of investors,” Richard Schober, managing director of public finance investment banking at Piper Sandler & Co., said. His presentation at the Nov. 23 PUD board meeting shared several additional details.

 

The all-in cost of borrowing was 2.89 percent, Schober said, which is among the recent all-time low rates.

 

The total proceeds will pay off a $2.3 million line of credit and a $2.5 million RUS (Rural Utilities Service) loan. In total, about $34.8 million is slated for capital projects.

 

Everything came together very well and the district is now in a good position to go to work on necessary rebuilds and upgrades which will benefit our customers in the years ahead,” Director of Finance Janet Crossland said.

 

Those capital projects include rebuilding the Okanogan-Brewster transmission line with steel poles after the Cold Spring Fire destroyed about 40 percent of it; upgraded conductor on the line will also allow for more power from Wells Dam, the district’s least-cost source of power. The Tonasket substation and power transformers for other substations are also on the list, along with several other projects.

 

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