Featured Municipal Bond Issue, Week of October 8, 2018: Department of Water and Power of the City of Los Angeles, California — $300 Million
The Department of Water and Power of the City of Los Angeles, California is issuing $300 million Power System Revenue Bonds for the purposes of refunding certain outstanding obligations and make capital improvements of the Department and pay certain costs of issuance. The bonds are being sold by negotiated underwriting led by Ramirez & Co., Inc.. The sale is expected to occur during the week of October 8th, subject, in part, to market conditions. The Bonds will be issued in two series: $237.8 million 2018 Series B Bonds are designated primarily for refunding and the $62.2 million Series C Bonds will be used primarily to pay the costs of capital improvements of the power system.
Both series of Bonds will be special obligations of the Department payable only from the Power Revenue Fund and NOT out of any other fund or moneys of the Department or the City of Los Angeles. Both series will not provide a lien or constitute an obligation of the City.
The Department of Water and Power was originally created in 1925 and is designated as an enterprise or “proprietary” department of the City of Los Angeles. The Department is the largest municipal utility in the nation and provides electric service through its Power System and water service through its water system in a service area consisting almost entirely of the City.
Potential investors should review the preliminary official statement offering document in its entirety for complete details and special provisions related to the Security or the 2018A Bonds and the Proposed Amendements to the Master Indenture. Visitors to Munios must register first on MUNIOS.COM website before clicking on the specific reference to the Official Statement.
Interest on the Series 2018A bonds are in the opinion of Bond Counsel tax-exempt for federal income tax purposes and is exempt from State of California personal income taxes.
Details on the purposes, tax-status, security, risks as well as other matters pertaining to these OSF bonds can be found in the preliminary official statement after registering on the munios website and searching for the Department of Water and Power of the City of Los Angeles.
These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.