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The Port of Sunnyside saves over $200,000 in interest payments over the next 10 years
by refinancing their 2003 Revenue Obligation (RO) Bond
The Port operates an Industrial Waste Water Treatment Facility (IWWTF) permitted by the Washington State Department of Ecology. The 2003 original RO bond was sold to help finance the construction of the IWWTF’s Sequencing Batch Reactors (SRBs). These SBRs were constructed to increase capacity and allow advanced wastewater treatment.
The Port serves eleven food or food related industries, a steel fabricator and a pipe manufacturing plant all here in Sunnyside. The thirteen industries contribute an estimated $30 million dollars in direct payroll to the local economy and several millions more in indirect dollars through purchases of raw goods, materials and services. Saving money for these local industries is important to the Port since the industries pay for the IWWTF debt through their rates.
The Port worked with D. A. Davidson to replace the old variable interest rate structure with rates averaging 5.65% (for the remaining 10 years of the bond) with a new 4.375% interest rate.
The 2003 Bonds were not eligible for refinancing until 10 years into the original 20 year term. So this was the first opportunity to capitalize on lower interest rates.
The Port is proud to have been able to save money for local industries by proactively refinancing debt in order to take advantage of lower interest rates.