Beaufort-Jasper [S.C.] Water & Sewer Authority is planning to issue about $60 million in tax-exempt debt finance building a water purification facility that would supply drinking water to Hilton Head Island, a spokesman for the authority said yesterday.
The bonds, which will be issued in late 1991 or early 1992, will be backed by wholesale contracts for water service with Hilton Head water suppliers. The facility will take between three and four years to complete, the spokesman said.
The official added that the authority has received proposals from investment banking firms interested in underwriting the borrowing.
The authority has narrowed the field for potential candidates to about six firms and hopes to have chosen a lead underwriter by its mid-August board meeting.
The pledges of revenue securing the bonds will be on a parity with other obligations of the authority. These include two 1988 issues: $5.3 million of series 1988A refunding bonds and $1.6 million of 1988B refunding bonds.
The 1988B debt is rated A by Standard & Poor's Corp. The 1988A bonds are rated AAA by both Standard & Poor's and Moody's Investors Service on the strength of insurance from MBIA Corp.