The Castaic Lake Water Agency’s Santa Clarita retail division has refinanced its debt for capital projects at a favorable rate that will save customers money, the agency said Thursday.
The Santa Clarita Water Division said it completed bond sales of $52.3 million at the low rate of 3.52 percent, thanks to high competition for the agency’s water bonds. The water retailer is using the funds to pay off an outstanding loan, saving $3.67 million over the 17-year life of the bonds.
“While there has been a lot of volatility in the markets, our strong financial and management policies and good credit ratings helped us achieve the low rates and overall savings,” CLWA President Tom Campbell said.
The Santa Clarita Water Division is rated AA by Standard and Poor’s and Aa3 by Moody’s, both considered hight for the industry, the agency said.
The financing is used for projects that maintain the water system and enhance water supply reliability.