FOR IMMEDIATE RELEASE
CONTACT: Andrew Bliss
CAPITAL REGION WATER SAVES $8.8 MILLION WITH BOND REFUNDING SALE
DEBT SERVICE SAVINGS ACHIEVED WITH IMPROVED MANAGEMENT, INVESTMENT GRADE RATING
HARRISBURG (April 26, 2016) – Capital Region Water closed on its $52,175,000 Water Revenue Refunding Bonds, Series 2016 A and Taxable Series 2016 B issue last week that sold on April 6, 2016. The refunding sale achieved $8.8 million in net present value savings.
“The savings from this bond refunding sale is proof that improving the management of our water systems and investing in our infrastructure pays off for our customers,” said Capital Region Water CEO Shannon Williams. “Our proactive efforts to be transparent, increase staffing levels, develop capital improvement plans, and begin much needed repairs not only improves our service, but also reduces costs in the long run.”
The $8.8 million in net present value savings was primarily achieved by selling refunding bonds with lower interest costs to replace existing water revenue bonds with higher interest costs. During the bond refunding sale, 28 separate investors placed $244.13 million of orders making the transaction 4.7 times oversubscribed which allowed the underwriters to reduce the interest rates during the pricing. The amount and number of orders indicates strong investor demand for Capital Region Water’s bond offering.
This was the first issuance of Water Revenue Bonds for Capital Region Water since taking over the operations of the Harrisburg area’s water systems in 2013. Capital Region Water received an investment grade rating of A+ from Standard & Poor’s on the Series 2016A and Taxable Series 2016B Water Revenue Refunding Bonds in March prior to this sale.
Morgan Stanley served as senior manager, Public Resources Advisory Group served as financial advisor, and Cohen & Grigsby P.C. served as bond counsel for this financing.
More information about Capital Region Water’s budgets, rates, engineering reports, and audits can be found online at: //capitalregionwater.com/investor-kit