The Castaic Lake Water Agency on Tuesday successfully completed bond sales of $64 million to refund an outstanding bond series, which will reduce the Agency’s annual debt service costs and result in savings to the Agency’s customers.  The annual savings will reduce debt service for capital improvement projects funded by taxpayers and developer impact fees.

High competition for the bonds led to securing a low rate of 3.19 percent, which will save the Agency $10.3 million over the 20-year life of the bonds (13.2% net present value savings).  In addition, the Agency sold a debt service reserve fund investment associated with the previously outstanding bonds at good price and also used available funds to pre-pay an August debt service payment.  By doing this, the Agency reduced its outstanding amount of bonds by $13.7 million.

“Our strong financial and management policies, our secure water supply during a drought situation and good credit ratings helped to achieve the low rates and overall savings,” stated Tom Campbell, Agency Board President.  The Agency holds credit ratings of AA- from both Standard and Poor’s and Fitch Ratings.  These credit ratings are considered high quality for water utilities.

About the Castaic Lake Water Agency

The Castaic Lake Water Agency (CLWA) is the Santa Clarita Valley’s public water wholesaler. 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 treatment plants, 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.