The Castaic Lake Water Agency on Wednesday successfully completed a bond sale of $50.7 million to refund two outstanding bond series, the Santa Clarita Water Division 2010B Certificates of Participation and the 2011A Revenue Bonds.
Present value savings for the bonds are estimated to be $6.1 million (11.4 percent), exceeding the agency’s minimum savings standard of 5 percent.
The refunding will reduce the agency’s annual debt service costs by an average of $304,000.
The agency was able to take advantage of an extremely low-interest-rate environment in which the bonds were issued at an all-in true interest cost of 2.01 percent.
CLWA Assistant General Manager Valerie Pryor stated: “The Board has a policy to review current debt and take advantage of historically low interest rates to refinance if appropriate to reduce the total cost to our customers.”
In September 2017, the Santa Clarita Water Division received an upgraded long-term bond rating from Standard & Poor’s from AA to AA+. Standard & Poor’s stated: “The ratings reflect, in our opinion, the combination of a very strong enterprise risk profile and an extremely strong financial risk profile.”
About the Castaic Lake Water Agency
The Castaic Lake Water Agency is the Santa Clarita Valley’s public water wholesaler and operates the retail Santa Clarita Water Division, serving over 30,000 retail services. CLWA is one of 29 State Water Project contractors and receives water imported from northern California and Kern County through the California Aqueduct. CLWA operates two large surface water treatment plants, a groundwater treatment facility, three major pump stations, three water storage facilities and over 45 miles of large diameter transmission pipelines delivering water to four local water retailers. Our mission is to provide reliable, quality water at a reasonable cost to the Santa Clarita Valley.
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1 Comment
Debt savings? Oh brother! You can’t continue to take on more and more debt and have it save money. You just stretch out the payments over a longer time.
I have lived in this area for over 20 years. EVRY TIME Castaic Water re-financed to extend the debt they said this same thing. If it is true, then way is their debt burden so high. This Agency is out of control and if Jerry Brown has his way, it will soon control all the water in this vally. Very bad news for this vally. You should all be emailing and calling the governor – no on SB634.