Independent water purification plants in New Mexico and Colorado have been getting ready for major debt.
Independent water treatment plants in the US and overseas have been paying off huge loans over the years as they’ve grown, but they’re in desperate need of new financing to keep going.
For the first time, the company that builds and maintains the plants in those states is asking for public support in a bond issue.
It’s a first for a water treatment facility.
The debt for the $100 million plant is for a portion of the plant’s operating revenue, according to a press release from the company, Sunoco.
Sunoco has been working on a $50 million plant in Louisiana since 2012 and has been borrowing to pay off debt.
The debt has been due over the next four years, and the company is hoping to repay that debt in 2023.
“We are not getting into the debt cycle again and we are looking to get back into the cycle,” said Sunoco’s chief financial officer, Mark Stahl.
But the plant is not the only plant that needs a new loan.
Last month, another $100,000 in debt was added to a $5.4 billion plant in New Jersey, with debt for another $4.9 billion expected in 2026.
Sunoco’s financing model has been criticized by environmentalists and critics who say it’s a big giveaway to large water companies, but the company says it’s not taking advantage of people.
“It’s not about the people at Sunoco, it’s about the shareholders, which is why we’re here,” Stahl said.