WSSC Successfully Sells $390 Million in AAA-rated Bonds
OFFICE OF COMMUNICATIONS AND COMMUNITY RELATIONS
FOR IMMEDIATE RELEASE
Laurel – October 16, 2015: WSSC competitively sold $390 million of Consolidated Public Improvement Bonds on October 14, 2015 to Bank of America Merrill Lynch. The bonds were issued at a true interest rate of 3.426919 percent; slightly better than the rate received in the last issuance in November 2014.
WSSC’s General Manager/CEO Jerry N Johnson said, “This successful issuance demonstrates the markets belief in the strong financial position of WSSC and will provide the necessary funding to continue much needed investments in our infrastructure.”
“This was a great day for WSSC ratepayers” said Yvette Downs, WSSC CFO. “The rates on this issuance are lower than anticipated, which reduces the long-term costs for our stakeholders.”
The bonds were rated AAA/Aaa/AAA by all three bond rating agencies: Fitch Ratings, Moody’s Investors Service and Standard & Poor’s, which also reaffirmed WSSC’s AAA rating on its other outstanding bonds. The $390 million 30-year bonds will be used to finance WSSC capital projects and pay down a portion of the Commission’s bond anticipation note program.
Six firms registered and bid on the bonds, with the range of True Interest Cost (TIC) from a low of 3.426919 percent to a high of 3.650062 percent.
WSSC plans to use the historically low interest rate environment and refund up to $150 million of existing bonds before the close of the 2015 calendar year.
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.