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The Castaic Lake Water Agency on Wednesday successfully completed a bond sale of $50.7 million to refund two outstanding bond series, the Santa Clarita Water Division (SCWD) 2010B Certificates of Participation and the 2011A Revenue Bonds.

Present value savings for the bonds are estimated to be $6.1 million (11.4%), exceeding the Agency’s minimum savings standard of 5%.  The refunding will reduce the Agency’s annual debt service costs by an average of $304,000.  The Agency was able to take advantage of an extremely low interest rate environment in which the bonds were issued at an all-in true interest cost of 2.01%.

CLWA Assistant General Manager Valerie Pryor stated “The Board has a policy to review current debt and take advantage of historically low interest rates to refinance if appropriate to reduce the total cost to our customers.”

In September 2017, the Santa Clarita Water Division received an upgraded long-term bond rating from Standard & Poor’s from AA to AA+. Standard & Poor’s stated “The ratings reflect, in our opinion, the combination of a very strong enterprise risk profile and an extremely strong financial risk profile.”