Client Successes Dec 07, 2018

Water and Wastewater Bond Deal

BB&K Attorneys Served as Bond Counsel

Water and Wastewater Bond Deal

Best Best & Krieger LLP’s Public Finance attorneys served as bond counsel for the City of Oxnard Water and Wastewater Bonds. The bonds were issued to refund outstanding bonds of the City at lower rates and provide some debt service relief to the ratepayers in the City. Part of the wastewater refinancing involved terminating a swap, which was viewed as a credit negative by S&P Global Ratings, and establishing fixed rates for the bonds from weekly variable rates, which provides debt service stability to the City. Prior to issuing the bonds, the City had raised water and wastewater rates in 2015, only to see the new rates be subject to referendum. The City adopted new rates in 2017, which permitted the financings to move forward.
Ahead of the deal, S&P upgraded the wastewater revenue refunding bonds two notches to A-minus from BBB and assigned a stable outlook. The water revenue refunding bonds received an A rating. Both deals carried AA ratings from S&P because of Build America Mutual insurance. "The raised rating reflects our view of the steps taken by the city to de-risk its debt portfolio by refunding its existing variable-rate bonds with this series 2018 fixed-rate bonds and terminating a swap agreement to which it is a party," S&P analysts Malcolm N D'Silva and Tim Tung wrote Nov. 6.
Read more in “How Oxnard Got a Refunding Deal Done After Years of Turmoil” in The Bond Buyer, published Nov. 29 (subscription required).

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