The San Diego County Water Authority’s decision to do a forward delivery on one of two series for a $400 million refunding paid off with the water wholesaler realizing $67.4 million in savings.
The Water Authority decided to explore what has become a more frequent option used by issuers since tax-exempt advance refundings were eliminated by the 2017 federal tax bill with the aim of realizing greater savings for ratepayers, said Lisa Marie Harris, the water authority’s finance director.
Co-lead managers B of A Securities and Loop Capital Markets priced Wednesday a $283.5 million series and $117.7 million series of water revenue refunding bonds. Orrick Herrington & Sutcliffe LLP is bond counsel. Montague DeRose and Associates LLC and Acacia Financial Group are co-municipal advisors.