Washington Suburban Sanitary Commission CPI Bonds of 2019

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 financings, planning and debt implementation needs since 2016. To date, we have assisted in implementing six competitive public offerings of new money and refunding issues totaling more than $1.4 billion.

$233,565,000
Washington Suburban Sanitary District (Maryland)
Consolidated Public Improvement Bonds of 2019
Consolidated Public Improvements Bonds of 2019 (Second Series) (Green Bonds)

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

Project Overview

The CPI Bonds of 2019 (“Construction Bonds”) will provide funding for the construction or reconstruction of water supply facilities, water supply lines and transmission mains 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 costs of issuance of the Construction Bonds.

The 2nd Series of Bonds, which was WSSC’s inaugural issuance of Green Bonds, will be used to finance the (i) planning, design and construction of (1) improvements to a water filtration plant in order to reduce solids discharges, (2) replacement pre-filter chlorination and filter air scour systems of such water filtration plant, (3) rehabilitation of large diameter water transmission mains and large system valves and small water mains and other appurtenances including meter and PR vaults and (ii) costs of issuance of the Green Bonds.

Financing Overview

The CPI Bonds of 2019 received AAA/Aaa/AAA credit ratings. S&P also conducted an independent green bond assessment of the Green Bonds and assigned an overall score of E1/80.  Both series of bonds were structured as tax-exempt municipal bonds and sold via competitive, public offering on December 12, 2019. The interest rates on the bonds are fixed for the term of the financing and resulted in a combined True Interest Cost of 2.64%. The financing closed on December 23, 2019.

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