Featured Bond – Week of May 27, 2019: The Metropolitan Water District of Southern California – $220 Million in Water Revenue Refunding Bonds
The Metropolitan Water District of Southern California is issuing $220 Million in Water Revenue Refunding Bonds through competitive sale on or around May 29. The bonds are being used to refund a portion of the District’s outstanding bonds and pay certain costs for the issuance of the 2019 bonds.
The Bonds are rated AAA by S&P and AA+ by Fitch.
About The Water District & The Bonds
The Water District was created in 1928 and its current service area is approximately 5200 square miles. It includes all or portions of the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura. In 2018 the estimated number of people in the service area was 19 million.
The proceeds of the 2019 Bonds will be applied to refund a portion of or all of the outstanding maturities from the Metropolitan’s Water Revenue Bonds 2008 Series B, Series C, and Series D, the 2009 Series B, Series C, Series D, and Series E, and the 2014 Series C-1. The bonds will also be used to pay certain costs of issuance of the 2019 bonds. The bonds are exempt from federal and state income taxes.
Security for the Bonds
The bonds are special limited obligations of the Metropolitan Water District of Southern California and will be payable as to principal, redemption premium, if any, and interest solely from and secured by a pledge of and a lien and charge upon the Net Operating Revenues. The Net Operating Revenues are the Operating Revenues less the Operation and Maintenance Expenditures.
These details and more on purposes, security, risks and other matters pertaining to these Metropolitan Water District of Southern California water revenue refunding bonds can the found in the official statement, provided by MuniOS. After registering, if needed, visitors can link directly to the official statement as well as an investor’s roadshow by searching for the Metropolitan Water District of Southern California.
Statistical Snapshot: Metropolitan Water District of Southern California Selected Financial and Economic Indicators
Provided above is a quick snapshot of financial characteristics of the Metropolitan Water District of Southern California along with the medians for other water districts of all sizes, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness).
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.
Potential investors should rely only on the official documents and figures provided in the official statement (prospectus). Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies , they are not intended to replace official information presented in connection with the bond sale. Medians may differ from official sales documents due to methodology or survey base variances.