Oct. 29 - PFA Sells Bonds for Projects

ST. PAUL – The Public Facilities Authority (PFA) has sold two separate series of bonds totaling $291 million to underwrite the cost of water and sewer infrastructure projects in the state.

Bank of America Merrill Lynch was the low bidder for both series, bidding 2.79 percent for $200 million in tax-exempt state revolving fund bonds and 4.87 percent for $91 million in taxable state revolving fund bonds (Build America Bonds).

The PFA will make the $291 million available to Minnesota communities for low-interest loans for wastewater facilities and drinking water systems.

“This was a successful bond sale that underscores the solid economic fundamentals of the PFA,” said Terry Kuhlman, executive director of the authority. “The exceptionally low interest rates that these bonds attracted will save Minnesota taxpayers millions of dollars in debt service.”

The bonds received the highest rating of “AAA” from Moody’s Investors Services, Standard & Poor’s and Fitch Ratings, which recognized the PFA’s sound financial condition, including strong cash flow and reserves and the high quality of its loan portfolio. The PFA has maintained a “AAA” rating since 1995.

The PFA is a multi-agency authority that makes low-interest loans and grants available to Minnesota communities that otherwise could not afford the cost of major infrastructure projects, such as wastewater treatment plants and sewer and water facilities. The authority is governed by six state agency commissioners, including Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development (DEED), who chairs the group.

Since its inception in 1987, the PFA has financed more than $3.2 billion in public infrastructure projects in communities throughout Minnesota.

More details about the PFA and DEED are at www.PositivelyMinnesota.com. Follow them on Twitter at www.twitter.com/PositivelyMN.

Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk.

Minnesota Department of Employment and Economic Development
Communications Office
Phone 651/259-7161 or 1-800-657-3858 ∙ TTY 1-800-657-3973
www.PositivelyMinnesota.com