White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1935-06-06
First Step In
Refnancing Is
Accomplished
Approval of Bondholders
To Reduction Must Be
Secured

! The first step in the retinancing OF
the Priest Rapids irrigation districts
bond issue, now under negotiation, was
consummated recently when the board
of directors received contract between
the district and the state department
OF conservation and development which
makes the action possible.
Under the terms of the contract,
bondholders must agree to accept sixty
five per cent of the face value of the
bonds Approval of the bondholders to
the agreement must be secured by the
district within ninety days of the date
the contract was signed.
If this is accomplished the bonds
will be placed in escrow and will be
kept there until the department has
sufficient money to retire them.
| During the time that the bonds are
held in escrow, they will draw four per
cent interest in place of the six per
cent which they now earn, and no pay
| ments will be made on the principal. At
| such time as the refinancing is COM
| pleted, however, and the present bonds
replaced with a new issue, the interest
rate will depend upon the terms under
which the department is able to fur
nish the money. If it is borrowed
money, it is expected that the inter-
est rate will be five per cent for per-
| iod of years, dropping to a lower rate
as the department is able to use funds
OF it's own. If department funds are
available when the refinancing is car
ried out, the interest rate will be at
] a lower figure.
Boiid Issue Necessary
Since the district is not authorized
to borrow money, except by vote of
the people, it will be necessary to float
a new bond issue, to be voted on by
the landowners Of the district in order
to carry out the refinancing plans.
| Provision is also made in the con-
tract for money to be furnished by the
department from time to time or at
any time for the purpose of improving
| the properties of the district.
In letter to D. S. Wilkinson, sec
y
Banker director of conservation and
Development urges that In order to
deepen the power canal and carry out
improvements TO the distribution sys-
tenn, an application for loan be made
to the Public Works Administration.
Under the new terms of PWA loans,
a grant Of As per cent Is made, the
remainder of the loan carrying inter-
est at the rate of three per cent. For
mer terms called for a grant of thirty
per cent, with interest at four per
cent on the balance.
Directors View CouIee Dam
Since any improvement work on the
power canal at Priest Rapids will de-
pend to some extent on the effect OF
the Grand Coulee Dam on the flow Of
the river the board of directors OF
the district made trip to the dam
Monday, and at the same time went
over the engineering data for the APP
plication to the PWA with Marvin
Chase Of Wenatchee, who was in charge
OF former improvement work at the
power plant.
AS the department has no engineers
available to check the engineering
plans, Mr.. Chase was designated to
serve in this capacity by Director
Banker.
Construction of the dam, they
learned, will change present river
conditions very slightly. AT high water
stage, the lake which will be formed in
back of the dam can be filled within
a period of week, while at low wa
ter stage, there is no program contem-
plated of letting out a sufficient vol
ume of storage water to raise the river
to any appreciable extent.