The Crested Butte News Serving the Gunnison Valley since 1999
Bonds saw a good day at the market
[ By Katherine Nettles ]Gunnison County has settled the terms for financing its major Whetstone Community Housing development in the North Valley. The county took its municipal bonds to market on Tuesday, April 22, and the transaction will close on Tuesday, May 6. County staff have reported they consider it a success, with good feedback from the market and bond pricing that was within their expectations.
Gunnison County manager Matthew Birnie said the bonds had a good response amidst a volatile market environment and the blended ‘True Interest Cost’ is 5.2% with overall financing of 25 years.
“We are very happy with the results and the bond pricing came out within our expected parameters,” he wrote in an email update last week to the Crested Butte News.
Birnie described how, because the county issued municipal bonds, “not a loan per se,” there are different terms and interest rates for each bond, and they mature between 2027 and 2059.
“So, we are locked in on the financing and all the bonds were sold with more demand than availability. Investors seemed to like the structure of our deal and our conservative approach to the pro forma, along with the multiple layers of protection built in which will protect both investors and the county alike. Apparently, some other public debt offerings in the market yesterday did not fare as well, so we are very pleased with the outcome. We will officially close the transaction on May 6, but the terms are now settled.”
The county officially broke ground on the Whetstone property alongside Highway 135 across from Brush Creek Road last week, and for the next couple months Birnie said there will be a lot of dirt work, grading the site and beginning site utility installation. There will also be offsite utility work in the Highway 135 right-of-way.
