Yorba Linda, CA (May 11, 2017) – YLWD announced today that on April 26, 2017, the District successfully sold $29.3 million in revenue bonds which will result in $4.2 million in savings as compared to the outstanding 2008 certificates of participation it is refinancing. The escrow account closed on May 11, 2017.
The bond team led by the General Manager, Marc Marcantonio and Finance Manager Delia Lugo, successfully worked with financial advisors at Fieldman, Rolapp & Associates, Inc., specialized legal counsel at Stradling, Yocca, Carlson & Rauth, P.C. and Citigroup to issue the new bonds to refinance the 2008 issuance. An additional $6 million was raised to fund the Fairmont Pump Station which will provide significant distribution safety, redundancy and versatility to deliver water within the unique geography of the District.
The successful endeavor took advantage of current low interest rates. The project included key meetings with Standard & Poor’s and Fitch Ratings, the two credit agencies that rated the bonds. Standard & Poor’s assigned a rating of AA+ and Fitch Rating assigned a rating of AA to the bonds. The refinancing project followed strict legal requirements, generated significant disclosures and sale of the bonds at the end. Additionally the low interest rate allowed the District to efficiently raise $6 million in additional capital for a vital long-term asset, the Fairmont Pump Station.
The Board established this project as its major priority, explaining the bond offering will provide a stronger foundation for YLWD’s financial future while the Fairmont Pump Station secures a safe, economical and reliable distribution asset for decades to come.