Officials of Tennessee Utility Assistance LLC announced this week that Bedford County Utility District has closed on a $4.475 million loan through TUA's municipal finance program. The loan will be used to refinance outstanding bonds for interest cost savings of more than $960,000, according to a news release.
Shelbyville-based BCUD provides water service to many of the rural areas of the county, and natural gas in some areas as well.
Standard and Poor's, one of the major credit rating agencies, assigned its "A" Rating to the Series 2013 Bonds. The agency cited strong financial and operating profiles, including healthy debt service coverage and limited future borrowing needs, as the district's strengths. A TUA news release calls the rating "a reflection of careful decision-making from the District's Board of Commissioners and leadership from District management to foresee future needs and make ample preparations."
TUA is a registered municipal advisor that provides multiple services to Tennessee's utilities. Duncan-Williams Inc. underwrote the bonds and Bass, Berry & Sims PLC of Nashville was bond counsel.