Pure Cycle Corporation Announces Receipt of $23.6 Million From Second Sky Ranch Community Authority Board Bond Offering

About this update from Pure Cycle Corporation

[{"type":"text","content":"DENVER, CO / ACCESSWIRE / August 24, 2022 / Pure Cycle Corporation (NASDAQ:PCYO) (Pure Cycle) today reported the Sky Ranch Community Authority Board (Sky Ranch CAB) successfully closed its second municipal bond financing totaling $29.7 million, which netted the Sky Ranch CAB $23.6 million after fees, capitalized interest, and expenses. After the closing, the Sky Ranch CAB repaid Pure Cycle $23.6 million in public improvement reimbursables and associated interest.The Sky Ranch CAB, a political subdivision and a public corporation of the State of Colorado responsible for the construction, design and financing of the public improvements at the master planned community Sky Ranch, 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, which were available to repay the funds Pure Cycle advanced to the Sky Ranch CAB for public improvements, with accumulated interest.\"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, we were able to close the second bond offering with good terms and above our projected size,\" commented Mark Harding, President of Pure Cycle.\"The CAB's underwriter, DA Davidson, successfully placed the bonds in a contracting bond market at competitively low rates. This second bond offering brings the total municipal bonds issued by the Sky Ranch CAB to $42.9 million, which is indicative of the strength and success of our Sky Ranch Master Planned Community. We continue to finish lots and our home builders continue to enjoy high demand for entry level houses at Sky Ranch. The initial development phase at Sky Ranch (with 509 homes) is sold out, and we are completing the lots in phase 2A of Sky Ranch (229 lots for this subphase). Due to the success of our first phase, our second phase includes a broader range of products including mixed residential products with multiple product offerings all targeted to the entry level home buyer,\" concluded Mr. Harding.Company InformationPure Cycle continues to diversify its operations, grow its balance sheet, and drive recurring revenues. We operate in three distinct l...

More updates from Pure Cycle Corporation