DC Water saves $50 million; refunds nearly $300 million in utility bonds

While keeping on top of the pandemic response, DC Water last week capitalized on the volatile investment market, saving $50 million by refinancing Series 2012 A and C subordinate-lien bonds.

DC Water completed the Series 2022 Forward Direct Purchase with JP Morgan through DNT Asset Trust to refund almost $300 million in outstanding debt. The transaction locked in a total interest cost of 2.18% to be recognized in July 2022. This is among the lowest average interest rates for any refunding deal in DC Water’s history.
 
“We acted quickly to secure this private market opportunity,” said DC Water CEO and General Manager David L. Gadis. “Swift action by our Board of Directors and the financing team enabled us to capture these historically low rates.”

“Refinancing now saves us about $3.8 million annually from Fiscal Year 2022 to Fiscal Year 2037,” added DC Water Chief Financial Officer Matthew Brown. “We repay our debt service from our operating budget, which is one component that drives rate increases. Therefore, savings like these benefit our ratepayers in future budgets.”

For more information about DC Water’s bond offerings, please visit the Investor Relations portion of DC Water’s website at dcwater.com/investor-relations.