Clark County Water Reclamation District clears $196.5M refunding bond issue

Clark County Water Reclamation District clears $196.5M refunding bond issueThe Nevada utility is advancing a debt refunding strategy projected to generate $7.5 million in net present value savings, with a market sale expected after final credit ratings are secured in mid-June.

The Board of Trustees approved Resolution 26-004 for up to $196,525,000 in General Obligation Water Reclamation Refunding Bonds.

The transaction targets a portion of the district's existing debt and is projected to yield approximately $7.5 million in net present value savings.

Final rating reports from Standard & Poor's and Moody's are anticipated by June 10.

The Clark County Water Reclamation District (CCWRD) has secured final board authorization to issue up to $196.5 million in general obligation refunding bonds, moving the utility one step closer to a market sale intended to lower its existing debt servicing costs. Sitting as the CCWRD Board of Trustees on June 2, the Clark County Commission unanimously approved Resolution 26-004. The multi-stage approval process previously cleared the Clark County Debt Management Commission. Mr. Manwaring, presenting the item to the board, noted that current market conditions project the refunding will generate approximately $7.5 million in net present value savings. The district recently completed rating agency presentations with Standard & Poor's and Moody's on May 18, with final bond rating reports anticipated by June 10. "With the board's approval of this item, all necessary authorizations will be in place to provide us the flexibility to go to the bond market for sale, hopefully under whatever the best market conditions would permit themselves to be," Manwaring told the board. During the brief discussion, Commissioner Kirkpatrick requested that utility staff send a follow-up letter to the Debt Management Commission detailing the actual savings achieved once the bonds are officially taken to market.