Denver Water sells first Build America Bonds under stimulus program - Denver Business Journal:

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Build America Bonds are taxable bonds with a 35 percent federal subsidg oninterest costs. Denver Water, like most governmenrt agencies, traditionally issues tax-exempt bonds. Denve Water sold $44 million of Buils America Bonds to at just over 6 percenty interest on ataxabler basis. Because of the federal tax subsidy unde the American Recovery and Reinvestment Act of Denver Water willpay 3.94 percent That is less than the average 4.23 percent that Denvet Water pays on its outstanding tax-exempty bonds. Wachovia is owned by San Francisco-based Wells Fargo Co.
“We are pleased to be able to sell bondsw at a very reasonable rate in the currentmarket environment,” said Chipzs Barry, manager of Denver Water, in a statement. “Fofr ratepayers, this means we are able to keep cost as low as possible while providinhg us the funding to improve our Standard & Poor’s recently upgraded Denver Water’s credit rating to AAA, its highes rating.