SCWD sells $41.6 million in revenue bonds, saving ratepayers approximately $979,000

South Coast Water District (SCWD) successfully sold $41.6 million in revenue bonds in February, resulting in approximately $979,000 in net present value savings as compared to the 2010B revenue bonds refinanced. SCWD also financed $25 million in additional capital for critical long-term assets; the bond issue successfully closed on February 20, 2019.

The bond team, led by the General Manager Rick Shintaku and Chief Financial Officer Pamela Arends-King, successfully worked with municipal advisors at Fieldman, Rolapp & Associates, Inc., specialized legal counsel at Stradling, Yocca, Carlson & Rauth, P.C., and bond underwriter Morgan Stanley to issue the new bonds to complete the transaction. 

The successful path included critical meetings with S&P Global Ratings and Fitch Ratings, the two credit rating agencies that rated the bonds. Both S&P Global Ratings and Fitch Ratings assigned a credit rating of AA+ to the bonds. 

SCWD’s strong credit story (inclusive of strong financial results, a stable and robust local economy, and strong management) resulted in a successful pricing that attracted robust demand from retail and institutional investors, resulting in nearly $78 million of total orders from a wide range of accounts, including some of the largest bond funds in the municipal market. 

South Coast Water District was established in 1932. The District currently serves South Laguna Beach, most of Dana Point, and parts of San Clemente and San Juan Capistrano. District facilities include 15 reservoirs, 147 miles of water lines, 136 miles of sewer lines, seven water pumping stations, 14 sewer pumping stations, and approximately 12,360 water meters. An elected five-member Board of Directors governs the District. 

To learn more, visit www.scwd.org.