HomeMy WebLinkAboutF-2 Water Bonds Refinance Results Information Item
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AZ USA
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INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 28, 2015
SUBJECT: WATER BONDS REFINANCE RESULTS
Following Utility Board approval, Staff took the necessary steps to refinance the Water Parity
Revenue Bonds Series 2006. On the August 18 closing date, there were $51.18 million of
outstanding debt associated with the 2006 bonds with an average coupon rate of 4.97%; $50.0
million are callable on or after January 1, 2017 and so have been placed in an Escrow account
until then. The 2006 bonds had a reserve requirement of$3.65 million which was released and
used to buy-down the new Water System Refunding Revenue Bonds Series 2015. With this buy-
down, the new 2015 bonds were issued for $47,740,000, which includes cost of issuance, with a
3.99% average coupon rate. Overall, the refinance resulted in a 12.3%Net Present Value savings
with annual debt service payment reductions of$13.8 million over the next 24 years as follows:
Old Payment New Payment
Fiscal Year 2006 Bonds 2015 Bonds Annual Savings
2016 $ 1,266,469 $ 726,545 $ 539,924
2017 3,649,312 3,099,338 549,975
2018 3,645,687 3,093,388 552,300
2019 3,649,062 3,098,563 550,500
2020 3,649,187 3,099,688 549,500
2021 3,646,062 3,097,563 548,500
2022 3,649,437 3,097,063 552,375
2023 3,649,062 3,097,938 551,125
2024 3,649,812 3,099,938 549,875
2025 3,648,062 3,097,938 550,125
2026 3,649,219 3,096,813 552,407
2027 3,645,125 3,096,313 548,813
2028 3,645,000 3,095,988 549,013
2029 3,649,875 3,097,188 552,688
2030 3,649,500 3,096,588 552,913
2031 3,648,750 3,097,463 551,288
2032 3,647,375 3,097,931 549,444
2033 3,645,125 3,093,900 551,225
2034 3,646,625 3,093,763 552,863
2035 3,646,500 3,097,663 548,838
2036 3,649,375 3,098,413 550,963
2037 3,649,875 3,099,100 550,775
2038 3,647,750 3,099,100 548,650
2039 3,647,625 3,094,700 552,925
2040 3,649,000 3,095,700 553,300
Total $ 88,818,875 $ 75,058,576 $ 13,760,295
Prepared by: Talika M. Johnson, Utilities Administrative and Financial Services VB.
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