Investor Relations

Bond Disclaimer

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2012 Bond Issuance

DC Water successfully sold $440,645,000 in Subordinate Lien Revenue Bonds on March 14. The bonds were structured in threes Series: Series A was a fixed rate, new money totaling $177,430,000 for DC Water's Capital Improvement Program. Series C was a fixed-rate refunding of 2003 bonds totaling $163,215,000. DC Water also issued $100,000,000 in this transaction as SIFMA Index Variable Rate Debt. These Series B Bonds were structured with 3 and 4 year hard puts and priced at initial spreads of SIFMA plus 48 basis points and SIFMA plus 58 basis points, respectively.

The refunding of the 2003 bonds resulted in present value savings of $17.8 million or 9.7% of refunded par. Additionally, by fully refunding the entire 2003 Series, DC Water eliminates the expense associated with a letter of credit for the debt service reserve. This results in additional present value savings to the Authority.

The fixed and variable rate bonds were issued as a common plan of finance. Interest rate statistics for the aggregate transaction are not available at this time due to the variable nature of the Series B bonds. For the fixed rate portion of this transaction only, the cost of borrowing (including the cost of issuance and underwriting fees) was 3.687%.

Closing on the bond sale occurred on March 23, 2012.

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