The Internal Revenue Service has notified the Metropolitan Water Reclamation District of Greater Chicago that it has closed an audit without changing the tax-exempt status on $346.6 million of general obligation refunding bonds and $50.79 million of GO refunding bonds limited-tax series issued in May 2006.
The IRS notified the district of the audit closure in a May 8 letter and the district disclosed the IRS letter in an event notice the district filed with the Municipal Securities Rulemaking Board’s online EMMA system.
The IRS had opened the audit on Jan. 30, 2012, according to the district, which disclosed the audit in February 2012.
Both sets of bonds were issued to refund variable-rate refunding bonds issued in June 2002. The 2006 bonds were also used to pay termination costs of swap agreements that had been entered into in connection with the 2002 variable-rate bonds, according to bond documents.
The district, which encompasses Chicago and 125 suburbs, is responsible for treating sewage and preventing flooding.
Mesirow Financial Inc. and Harris NA were co-underwriters. Chapman and Cutler LLP and Burris, Wright, Slaughter & Tom LLC were co-bond counsel on the deal, according to bond documents.
DLA Piper Rudnick Gray Cary US LLP was special counsel to the district. Co-underwriters’ counsel were Katten Muchin Rosenman LLP and Pugh, Jones, Johnson & Quandt PC.
All of the firms are based in Chicago.