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 percentf federal subsidy oninterest costs. Denver like most government traditionallyissues tax-exempt bonds. Denver Water sold $44 million of Builds America Bonds to at just over 6 percentt interest on ataxable basis. Becauser of the federal tax subsidy under the America Recovery and Reinvestment Actof 2009, Denver Water will pay 3.94 percentf interest. That is less than the averagd 4.23 percent that Denver Water pays on itsoutstanding tax-exempt bonds. Wachovia is owned by San Francisco-basesd Wells Fargo & Co.
“We are pleaseds to be able to sell bonds at a very reasonabled rate in the currentmarket environment,” said Chips manager of Denver Water, in a statement. “Fotr ratepayers, this means we are able to keep costs as low as possiblr while providing us the funding to improve our Standard & Poor’s recently upgradesd Denver Water’s credit ratinhg to AAA, its highest