For immediate release
Clean Water Services' $60.6 Million Bond Sale Funds Vital Capital Projects
Hillsboro, OR — March 19, 2008—
Clean Water Services (the District) sold $60.6 million worth of bonds on March 18 to continue its ongoing investment in vital sanitary sewer system capital projects. The bond sale will help spread out the cost of capital improvements and help mitigate large rate increases in the future. These bonds mature over a 20-year period with an average bond life of just over 13 years, selling at a true interest cost of 4.66 percent. This was the first District bond sale funding new projects since 2001, due largely to Clean Water Services’ ability to cash finance significant capital investments over the past several years.
Both Moody’s Investors Service and Standard & Poors recently upgraded Clean Water Services’ crediting ratings to Aa3 and AA-, respectively. These rating upgrades enhanced the marketability of District bonds with investors in a very tight national credit market. This bond issue allows the District to continue its ongoing commitment to invest in technologically advanced wastewater treatment facilities that deliver environmentally sensitive services at a very competitive price.
Clean Water Services conservative financial policies and aggressive cost savings and operating efficiencies have helped the District maintain strong financial characteristics, including healthy debt service coverage and liquidity, according to the Standard & Poors rating summary. The District has currently budgeted for more than $57 million in sanitary sewer capital improvements in FY 2010 to meet new state and federal treatment and conveyance capacity requirements.
Clean Water Services is a water resources management utility for more than 500,000 people in urban Washington County and small portions of Multnomah County, Clackamas County, Lake Oswego, and Portland. Clean Water Services operates four wastewater treatment facilities, constructs and maintains water quality projects, and manages flow in the Tualatin River to improve water quality and protect fish habitat.
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