20050405_1147.pdf

ECISI 0 N MEMO RAND UM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
W 0 RKIN G FILE
FROM:TERRI CARLOCK
DATE:APRIL 1, 2005
RE:UNITED WATER IDAHO'S REQUEST TO REFINANCE IDAHO
WATER RESOURCE REVENUE BONDS.
RECOMMENDATION: APPROVAL
On March 31 2005, United Water Idaho filed a request for authority to refinance the
Idaho Water Resources Development Revenue Bonds, Series 1994. The outstanding balance of
$19 975 000 is currently at a stated coupon interest rate of 6.4% with a final maturity date of
October 1 2024. The Idaho Water Resources Development Revenue Refinancing Bonds, Series
2005 are estimated to be at a coupon interest rate of 4.7%.
This request is being expedited as the issuance date is scheduled near April 26, 2005
with the authority needed by approximately April 11 , 2005. United Water realized last week that
it needed to file for security authority with the Idaho Commission. To assure the lower interest
rate is received, Staff supports the expedited treatment and recommends approval of the
. refinancing.
Underwriting fees will be 3% with the expected issuance costs totaling approximately
$1.2 million. The pre-tax savings on a total company basis are estimated at $280 000. The
Series 2005 bonds allow for partial or full redemption on or after March 1 , 2012. United Water
will file all loan and underwriting agreements when finalized.
COMMISSION DECISION
Does the Commission approve the refinancing application for $19 975 000 of Idaho
Water Resources Development Revenue Refinancing Bonds at an estimated interest rate of
7%?
i:udmemos/uwiw052 rev bonds 4 2005 Terri Carlock
DECISION MEMORANDUM - 1 -April 1 , 2005