December 11, 2007
Contact: Patricia Decker, Manager,
Bellingham-Whatcom Public Facilities District
Address: 104 West Magnolia Street, Suite 308, Bellingham, WA 98225
Phone: (360) 738-7451
Alternate Phone Number: (360) 441-5035
Email: pdecker@cob.org
Web: www.bwpfd.org
Sale of $10 Million in PFD Bonds Approved
Late Monday afternoon, at a Special Meeting of the Bellingham-Whatcom Public Facilities District the PFD Board approved the sale of $9,995,000 in PFD bonds to Morgan Keegan & Co, Inc. of Memphis, Tennessee.
"This marks the next major step in carrying out museum and theatre projects that will serve the community and the region for years to come," said PFD Board President David Warren. "This is a very exciting time for us all."
Bond proceeds will help fund construction of the new Art Museum and Children's Museum now underway at the corner of Grand Avenue and Flora Street. These funds will also be applied to the second phase of renovations to the Mount Baker Theatre, scheduled to begin in March 2008. Other capital and operating endowment funds are being raised by the private fundraising group known as the Campaign for the Arts.
Financial advisor Alan Dashen of DashenMusselman, Inc. noted that the bonds receiving an underlying A1 rate from Moody's Investors Services late last month and were insured and sold as "Triple A" (Aaa) to the buyers. He noted that the PFD board's decision to make the bonds "bank qualified," by reducing the bond amount to just under $10 million over 20 years, lowered the effective interest rate for the PFD. The bonds were sold at a rate slightly better than anticipated. PFD bonds are backed by a Contingent Loan Agreement with the City of Bellingham.
