WSSC Sells $200 Million in Bonds
Sale Will Help Fund Infrastructure, Inspection Innovations
OFFICE OF COMMUNICATIONS AND COMMUNITY RELATIONS
FOR IMMEDIATE RELEASE
Laurel – April 16, 2014: The Washington Suburban Sanitary Commission (WSSC) successfully conducted two competitive bond sales on Tuesday totaling approximately $200 million. The sale of tax-exempt debt was split into two components; a $150 million series of new money and a $48.5 million series refunding existing debt.
The $150 million Consolidated Public Improvement Bonds of 2014 received six bids. The winning bidder, Citigroup Global Markets, offered a 3.31 percent true interest cost. The proceeds from this sale will be used to fund the Commission’s capital improvement program, including the replacement and reconstruction of infrastructure.
The Commission also sold $48,585,000 of Consolidated Public Improvement Refunding Bonds of 2014. This issue received nine bids, with the winning bidder, J.P. Morgan Securities LLC, offering a 1.23 percent true interest cost. The proceeds from this sale will be used to refund outstanding bonds from 2004. This refunding will result in debt service savings of nearly $3.8 million over the next eight years.
WSSC General Manager/CEO Jerry N. Johnson said: “The majority of these proceeds will fund our ongoing investment into infrastructure and inspection technology including the installation of acoustic fiber-optic (AFO) monitoring that warns us of potential weaknesses in our pipe systems. We are pleased with the results of the sale and this demonstration of confidence in the management of WSSC.”
Both bond issues were rated AAA by Fitch Ratings, Moody’s Investor Service, and Standard & Poor’s Ratings Services. The rating agencies also reaffirmed the Commission’s AAA rating on its existing debt.
For 100 years, WSSC has proudly served the citizens of Prince George’s and Montgomery counties – providing drinking water that has always met strict Safe Drinking Water Act standards and protecting the environment through vital water resource recovery services. Our vision is to be THE world-class water utility, where excellent products and services are always on tap.