Pure Cycle (NASDAQ: PCYO) announced that Sky Ranch Metropolitan District No. 1, part of the Sky Ranch Community Authority Board (CAB), received an investment grade ‘BBB’ rating from S&P Global Ratings for refinancing its 2019 Bonds. This rating reflects the district’s mature status, quality financial controls, and stable financial outlook. The Sky Ranch Master Planned Community, developed by Pure Cycle, has completed Phase 1 with 509 homes across 151 acres.
CEO Mark Harding stated that this rating will lower borrowing costs and provide additional funds to repay Pure Cycle’s advances for public improvements. The transaction is expected to close in November, potentially yielding $10 million to pay down the Sky Ranch CAB Note Receivable. Pure Cycle operates in three business segments: wholesale water and wastewater services, land development, and single-family home rentals at Sky Ranch.
Pure Cycle (NASDAQ: PCYO) ha annunciato che il Distretto Metropolitano Sky Ranch No. 1, parte del Consiglio dell’Autorità della Comunità Sky Ranch (CAB), ha ricevuto un rating di investimento ‘BBB’ da S&P Global Ratings per il rifinanziamento dei suoi Obbligazioni del 2019. Questo rating riflette lo stato maturo del distretto, i controlli finanziari di qualità e un outlook finanziario stabile. La Comunità Pianificata Sky Ranch, sviluppata da Pure Cycle, ha completato la Fase 1 con 509 abitazioni su 151 acri.
Il CEO Mark Harding ha dichiarato che questo rating contribuirà a ridurre i costi di finanziamento e fornirà ulteriori fondi per rimborsare i prestiti di Pure Cycle per miglioramenti pubblici. La transazione dovrebbe chiudersi a novembre, con un potenziale guadagno di 10 milioni di dollari per ridurre il Nota Ricevibile del CAB di Sky Ranch. Pure Cycle opera in tre segmenti di business: servizi di acqua e acque reflue all’ingrosso, sviluppo di terreni e affitti di case unifamiliari a Sky Ranch.
Pure Cycle (NASDAQ: PCYO) anunció que el Distrito Metropolitano Sky Ranch No. 1, parte de la Junta de la Autoridad de la Comunidad Sky Ranch (CAB), recibió una calificación de inversión ‘BBB’ de S&P Global Ratings para refinanciar sus Bonos de 2019. Esta calificación refleja el estado maduro del distrito, controles financieros de calidad y una perspectiva financiera estable. La Comunidad Planificada Master de Sky Ranch, desarrollada por Pure Cycle, ha completado la Fase 1 con 509 casas en 151 acres.
El CEO Mark Harding declaró que esta calificación ayudará a reducir los costos de financiamiento y proporcionará fondos adicionales para reembolsar los avances de Pure Cycle para mejoras públicas. Se espera que la transacción se cierre en noviembre, potencialmente generando 10 millones de dólares para pagar la Nota Receivable del CAB de Sky Ranch. Pure Cycle opera en tres segmentos de negocio: servicios mayoristas de agua y aguas residuales, desarrollo de terrenos y alquiler de casas unifamiliares en Sky Ranch.
Pure Cycle (NASDAQ: PCYO)는 Sky Ranch 종합구역 제1지구가 Sky Ranch 커뮤니티 권한 위원회(CAB)의 일원으로서 2019채권 재조정을 위한 S&P 글로벌 레이팅에서 투자 등급 ‘BBB’를 받았다고 발표했습니다. 이 등급은 해당 구역의 성숙한 상태, 양질의 재정 관리 및 안정적인 재정 전망을 반영합니다. Pure Cycle이 개발한 Sky Ranch 마스터 계획 커뮤니티는 151에이커에 걸쳐 509채의 주택으로 1단계를 완료했습니다.
CEO Mark Harding는 이 등급이 차입 비용을 낮추고 공공 개선을 위한 Pure Cycle의 자금을 갚기 위해 추가 자금을 제공할 것이라고 밝혔습니다. 이 거래는 11월에 마감될 것으로 예상되며, Sky Ranch CAB의 미수금 상환을 위해 1000만 달러가 발생할 가능성이 있습니다. Pure Cycle은 도매수도 및 폐수 서비스, 토지 개발, Sky Ranch의 단독 주택 임대라는 세 가지 비즈니스 분야에서 운영됩니다.
Pure Cycle (NASDAQ: PCYO) a annoncé que le District Métropolitain Sky Ranch No. 1, faisant partie du Conseil de l’Autorité Communautaire Sky Ranch (CAB), a reçu une notation de crédit d’investissement ‘BBB’ de S&P Global Ratings pour le refinancement de ses Obligations de 2019. Cette note reflète le statut mature du district, des contrôles financiers de qualité et une perspective financière stable. La Communauté Planifiée Sky Ranch, développée par Pure Cycle, a achevé la Phase 1 avec 509 maisons sur 151 acres.
Le PDG Mark Harding a déclaré que cette note permettra de réduire les coûts d’emprunt et de fournir des fonds supplémentaires pour rembourser les avances de Pure Cycle pour les améliorations publiques. La transaction devrait se clôturer en novembre, générant potentiellement 10 millions de dollars pour rembourser la créance du CAB de Sky Ranch. Pure Cycle opère dans trois segments d’activité : services d’eau et d’eaux usées en gros, développement foncier et locations de maisons unifamiliales à Sky Ranch.
Pure Cycle (NASDAQ: PCYO) hat angekündigt, dass der Sky Ranch Metropolitan District No. 1, Teil des Sky Ranch Community Authority Board (CAB), von S&P Global Ratings eine Investitionsnote ‘BBB’ für die Refinanzierung seiner 2019-Anleihen erhalten hat. Diese Note spiegelt den reifen Status des Distrikts, qualitativ hochwertige Finanzkontrollen und eine stabile finanzielle Aussicht wider. Die von Pure Cycle entwickelte Sky Ranch Master Planned Community hat die Phase 1 mit 509 Häusern auf 151 Acres abgeschlossen.
CEO Mark Harding erklärte, dass diese Note die Kapitalkosten senken und zusätzliche Mittel zur Rückzahlung der Vorschüsse von Pure Cycle für öffentliche Verbesserungen bereitstellen werde. Es wird erwartet, dass die Transaktion im November abgeschlossen wird und möglicherweise 10 Millionen Dollar zur Tilgung der Sky Ranch CAB Forderung bereitstellt. Pure Cycle ist in drei Geschäftsbereichen tätig: Großhandel mit Wasser- und Abwasserdiensten, Grundstücksentwicklung und Vermietung von Einfamilienhäusern in Sky Ranch.
Positive
- Sky Ranch Metropolitan District No. 1 received a ‘BBB’ investment grade rating from S&P Global Ratings
- The rating is expected to lower borrowing costs for District No. 1
- Transaction could yield approximately $10 million to pay down Sky Ranch CAB Note Receivable
- Phase 1 of Sky Ranch development is complete with 509 homes across 151 acres
- Pure Cycle operates in three complementary business segments, diversifying revenue streams
Insights
This news is significant for Pure Cycle (PCYO) and its investors. The investment grade ‘BBB’ rating assigned to Sky Ranch Metropolitan District No. 1 by S&P Global Ratings is a strong positive signal. This rating reflects the district’s maturity, quality financial controls and stable outlook, which are important for the Sky Ranch Master Planned Community’s success.
The refinancing of the 2019 Bonds is expected to yield approximately
For investors, this development indicates:
- Improved financial stability and reduced risk for the Sky Ranch project
- Potential for increased profitability due to lower borrowing costs
- Enhanced credibility in Pure Cycle’s management and development strategies
While the immediate impact on stock price may be , this news reinforces the company’s long-term growth prospects and financial health, which should be viewed positively by investors.
DENVER, CO / ACCESSWIRE / October 10, 2024 / Pure Cycle Corporation (NASDAQ Capital Market:PCYO) is pleased to announce that Sky Ranch Metropolitan District No. 1, CO (District No. 1), was assigned an investment grade rating ‘BBB’ long-term rating by S&P Global Ratings for refinancing of its 2019 Bonds. Sky Ranch Metropolitan District No. 1 is a member of the Sky Ranch Community Authority Board (Sky Ranch CAB) which encompasses Pure Cycle’s development site known as the Sky Ranch Master Planned Community (Sky Ranch).
District No. 1 is the governmental boundary for the development of Pure Cycle’s Phase 1 of Sky Ranch. All development within the district’s approximate 151 acres are complete, incorporating 509 completed homes. The S&P Global Rating reflects the district’s mature status, the quality of their financial controls, and their stable financial outlook of Sky Ranch CAB.
“We are pleased to receive this highly coveted investment grade rating from the S&P Rating which reiterates our professional stewardship in managing the Sky Ranch CAB and our Sky Ranch Master Planned Community” commented Mark Harding, CEO of Pure Cycle. “An investment rated bond will lower the borrowing cost of District No. 1 and allow for additional net funds to repay Pure Cycle’s advances in constructing public improvements at Sky Ranch. The transaction is moving towards completion and is expected to price and close in November, yielding approximately
Company Information
Pure Cycle continues to grow and strengthen its operations, grow its balance sheet, and drive recurring revenues. We operate in three distinct business segments, each of which complements the other. At our core, we are an innovative and vertically integrated wholesale water and wastewater service provider. In 2017, we launched our land development segment which develops master planned communities on land we own and to which we provide water and wastewater services. In 2021, we launched our newest line of business, the rental of single-family homes located at Sky Ranch, which provides long-term recurring revenues, furthers our land development operations, and adds more customers to our water resource segment.
Additional information, including our recent press releases and SEC filings, is available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, or our CFO, Marc Spezialy, at 303-292-3456 or info@purecyclewater.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are all statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, such as statements about the following: our positioning to continue to grow through this market cycle; the completion and delivery of our rental units; timing of development at Sky Ranch; future tap sales and revenues; future home sales by our home builder customers; the affordability of our products; the strength of the Sky Ranch market; forecasts about our fiscal 2024 sales of water to oil and gas operators; our sales of lots; and our expected financial results. There is no guarantee that we will receive the benefits of the Sky Ranch CAB, or that the transaction will close. The words “anticipate,” “likely,” “may,” “should,” “could,” “will,” “believe,” “estimate,” “expect,” “plan,” “intend” and similar expressions are intended to identify forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ from projected results include, without limitation: home mortgage interest rates, inflation, and other factors impacting the housing market and home sales; the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2023; and those factors discussed from time to time in our press releases, public statement and documents filed or furnished with the U.S. Securities and Exchange Commission. Except as required by law, we disclaim any obligation to update publicly any forward-looking statements, whether because of new information, future events or otherwise.
SOURCE: Pure Cycle Corporation
View the original press release on accesswire.com
FAQ
What rating did Sky Ranch Metropolitan District No. 1 receive for its 2019 Bonds refinancing?
Sky Ranch Metropolitan District No. 1 received an investment grade ‘BBB’ long-term rating from S&P Global Ratings for refinancing its 2019 Bonds.
How many homes are completed in Phase 1 of the Sky Ranch Master Planned Community (PCYO)?
Phase 1 of the Sky Ranch Master Planned Community, developed by Pure Cycle (PCYO), has 509 completed homes across approximately 151 acres.
When is the Sky Ranch Metropolitan District No. 1 bond refinancing transaction expected to close?
The bond refinancing transaction for Sky Ranch Metropolitan District No. 1 is expected to price and close in November 2024.
How much additional funding could the bond refinancing provide to Pure Cycle (PCYO)?
The bond refinancing transaction is expected to yield approximately $10 million (depending on pricing) in additional funds to pay down the Sky Ranch CAB Note Receivable held by Pure Cycle (PCYO).