Pittsburgh, PA - Today, the Pittsburgh Water and Sewer Authority (PWSA) Board of Directors approved issuing approximately $162 million of refunding bonds to generate significant debt savings. The Bonds are expected to be sold in early October, and depending on interest rates, should result in present value savings of approximately $5 million.
PWSA expects to follow this issuance with a refinancing of its 2008 B1, 2008 B2 and 2008 D2 bonds, totaling $217 million in late October resulting in additional debt savings. If current markets hold, PWSA would realize over $20 million in present value savings on this second refinancing.
Interim Executive Director Robert Weimar said, “We expect these two proactive measures will produce $1.2 million in savings per year for our ratepayers. Actions like these, with support from our Board of Directors, should signal to our customers that we’re making every effort to improve all elements of PWSA, including financial management.”
In addition, the Authority is proactively modernizing its related bond documents to update and strengthen PWSA’s financial position. These updates will ensure that PWSA continues to have the ability to access capital markets to fund its $1.1 billion five-year capital improvement plan. The plan includes programs to remove lead lines, improve the quality and reliability of the drinking water system, and reduce flooding and combined sewer overflows.
The bond rating agencies have affirmed the Authority’s bond ratings of A2 from Moody’s and A from Standard & Poor’s. Both rating agencies have reviewed financial and operational information related to the Authority, including the proposed changes to the bond documents.
The Pittsburgh Water and Sewer Authority (PWSA) is the largest combined water and sewer authority in Pennsylvania, serving 300,000 consumers throughout the City of Pittsburgh and surrounding areas. Our over 260 employees are city residents and are committed to enhancing Pittsburgh’s quality of life by delivering high quality water.
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