Sky Ranch Community
After fees, capitalized interest, and other costs, the Sky Ranch Community Authority Board (Sky Ranch CAB) received $23.6 million from the sale of its second municipal bond financing, which Pure Cycle Corporation (NASDAQ:PCYO) (Pure Cycle) announced today. After the closing, the Sky Ranch CAB repaid Pure Cycle $23.6 million in public improvement reimbursable and associated interest.
The Sky Ranch CAB, a political subdivision and a public corporation of the State of Colorado, successfully sold tax-exempt, fixed-rate senior bonds in the aggregate par amount of $23.3 million and tax-exempt, fixed-rate subordinate bonds in the aggregate par amount of $6.4 million, resulting in $23.6 million of net proceeds that were made available to the Sky Ranch community.
We were able to close the second bond offering with good terms and above our projected size, said Mark Harding, president of Pure Cycle, “despite a challenging bond market due to rising interest rates, the team at the Sky Ranch CAB together with Phase 2 of the Sky Ranch Development having a superior credit than competing offerings.
“DA Davidson, the CAB’s underwriter, was successful in placing the bonds at competitively low rates in a contracting bond market. The Sky Ranch CAB has now issued $42.9 million worth of municipal bonds in total, which demonstrates the strength and prosperity of our Sky Ranch Master Planned Community. We continue to complete lots, and Sky Ranch’s home builders continue to experience strong demand for entry-level homes. Phase 2A of Sky Ranch’s original development phase, which included 509 homes, is now being finished (229 lots for this subphase). Our second phase contains a wider selection of products, including mixed residential products with numerous product offers, all of which are targeted at the entry-level house buyer due to the success of our first phase “Finally, Mr. Harding said.
Organizational Data
Pure Cycle keeps expanding its businesses, strengthening its balance sheet, and generating regular income. We conduct business in three different areas that are complementary to one another. We are a cutting-edge, vertically integrated wholesale provider of water and wastewater services.
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Author Jowi Kwasu 
