Parker Water and Sanitation District’s strong credit rating and reputation in the municipal bond market resulted in impressive savings last week for the district and its customers.
“Overall, we had approximately $54M in bonds available for sale – we received orders in excess of $354M meaning there was significant interest in the market to purchase our bonds,” said Steve Hellman, Chief Financial Officer. “Being oversubscribed is common, being 6.5 times is not.”
The increased interest in the bond sale allowed PWSD to further reduce the rates paid on the bonds and the ultimate payback. This reduction, from what was anticipated early Tuesday morning prior to the sale, saved the district an additional $400,000. With the refunding and new money, plus the premium received, the district’s combined interest rate on the bonds is 2.33%.
The results, driven partly by Parker Water’s strong credit rating and reputation in the municipal bond market but also a result of the Board’s commitment and dedicated efforts of PWSD employees each and every day. S&P Global Ratings assigned its ’AA+’ long-term rating to Parker Water and Sanitation District, Colo.’s series 2020 water and sewer enterprise revenue refunding and improvement bonds. At the same time, S&P Global Ratings affirmed its ’AA+’ rating on all outstanding water and sewer enterprise revenue bonds.
The District’s AA+ credit rating from Standard & Poor’s puts it in one of the most elite categories of all municipal issuers – not just utilities. The ratings reflect the district’s extremely strong service area economy, very diverse customer base, continued customer growth, and very strong financial metrics.