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February 22, 2001

MWRA Refinances High-Interest Bonds to Save $33 Million
In a financial move yesterday to refinance bonds issued in the high-interest rate period of 1992, MWRA saved ratepayers $33 million in debt service payments over the next decade. The refunding of $350 million in 1992 debt, resulted from a competitive bidding process structured by MWRA to take advantage of today’s lower interest rates.

MWRA Executive Director Doug MacDonald said "There were numerous bells and whistles in this deal on Wall Street, but is was very much like a homeowner refinancing a mortgage when interest rates dropped. It’s easy to appreciate that saving ratepayers $33 million in future interest payments is a good outcome."

MWRA has conducted three different types of refunding transactions in the past year to reduce debt service costs by about $6.3 million a year over the next ten years.

MWRA worked with Bear, Stearns & Co. to managed the refinancing process for MWRA. Goldman, Sachs & Co. was the winner of the bidding process.