Washington Suburban Sanitary Commission CPI Bonds of 2021

Wye River Group Served as WSSC’s Independent Financial Advisor for this Transaction

$333,980,000
Washington Suburban Sanitary District (Maryland)
Consolidated Public Improvement Bonds of 2021
Consolidated Public Improvement Bonds of 2021 (2nd Series) (Green Bonds)

Introduction

Established in 1918, the Washington Suburban Sanitary Commission (WSSC) is currently among the largest water and wastewater utilities in the nation, with a network of nearly 5,768 miles of fresh water pipeline and over 5,578 miles of sewer pipeline. The WSSC service area spans nearly 1,000 square miles in Prince George’s and Montgomery counties, Maryland, and serves 1.8 million residents through approximately 475,000 customer accounts.

Wye River Group has served as financial advisor to WSSC in connection with all of its financing, planning and debt implementation needs since 2016. To date, we have assisted in implementing ten competitive public offerings for new money and/or refunding issues totaling more than $2.5 billion.

Project Overview

The CPI Bonds of 2021 will provide funding for (i) the costs of the construction or reconstruction of water supply facilities, water supply lines and transmission mains, the construction or reconstruction of sewage disposal facilities,  sewer collection mains and trunk sewers and the acquisition of land or equipment for, or the construction, remodeling, enlargement, or replacement of any office or operating building necessary to administer or operate the water and sewer systems in the District and (ii) pay the costs of issuing the Bonds.

The 2nd Series of Bonds, which was WSSC’s third issuance of Green Bonds, will finance the (i) costs of certain projects which the Commission has designated as “Green Projects” and (ii) pay the cost of issuing the Green Bonds.

Financing Overview

The CPI Bonds of 2021 received AAA/Aaa/AAA credit ratings. S&P also conducted an independent assessment of the Green Bonds and assigned an overall score of 82 / Strong.  Both series of bonds were structured as tax-exempt municipal bonds and sold via competitive, public offering on September 28, 2021. The interest rates on the bonds are fixed for the term of the financing and resulted in a combined True Interest Cost of 2.25%. The financing closed on October 13, 2021.

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