WSSC Successfully Sells $181 Million in AAA-rated Bonds

All three ratings agencies reaffirm AAA ratings on existing debt

| News Release

OFFICE OF COMMUNICATIONS AND COMMUNITY RELATIONS

FOR IMMEDIATE RELEASE

Laurel – May 20, 2016 –WSSC successfully conducted two competitive bond sales on Tuesday, May 17, totaling approximately $181 million. The sale of tax-exempt debt was split into two components: a $145 million series of new money and a $36.4 million series refunding existing debt.

“The success of this sale is a significant illustration of the market's continued confidence in WSSC’s strong financial position,” said Carla A. Reid, WSSC’s General Manager/CEO. “These bonds provide funding that is vital to our long-term efforts to improve our infrastructure and provide world class water and wastewater service to our customers.”

The $145 million Consolidated Public Improvement Bonds of 2016 received seven bids. The winning bidder, Wells Fargo Bank, NA, offered a 2.81 percent true interest costs. The proceeds from this sale will be used to fund the Commission’s capital improvement program, including the replacement and reconstruction of aging infrastructure.

The Commission also sold $36,440,000 of Consolidated Public Improvement Refunding Bonds of 2016. This issue received eight bids, with the winning bidder, Bank of America Merrill Lynch, offering a 1.08 percent true interest cost. The proceeds from this sale will be used to refund outstanding bonds from 2006. This refunding will result in debt service savings of over $5 million over the next nine years.

Both bond issues were rated AAA by Fitch Ratings, Moody’s Investor Service and Standard & Poor’s Ratings Service. The rating agencies also recently 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.

 

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