Sanitation district raises $45.7M from bonds

The Hampton Roads Sanitation District said it raised $45.7 million this week from an offering of revenue bonds to help finance its capital improvement program. The offering was a mix of fixed-rate bonds with maturities ranging from 2012 to 2034. The true interest cost to HRSD for all of the bonds is 3.75 percent, said Steve de Mik, its finance director.

Orders for $17.2 million of bonds came from retail investors, he said. The bonds include an option that allows the regional wastewater-treatment utility to call them in eight years. The offering was underwritten by Morgan Stanley, BB&T Capital Markets and Morgan Keegan. HRSD is scheduled to have another offering, for $25 million of variable-rate revenue bonds, later this month, also for its capital improvement program.