The Suffolk County Water Authority this week capitalized on historically low interest rates by issuing $83.635 million of Water System Revenue Bonds, saving the Authority more than $13 million on a present value basis. The Series 2012 Bonds refunded $83.15 of outstanding debt.
Interest rates have continued to rally since the Authority originally began work on the refunding several months ago, allowing yesterday’s transaction to provide even greater savings than originally expected. The winning bidder ended up buying the bonds with a 12-year average life at a true interest cost of 2.69%.
“The Authority works diligently to maintain its AAA/AA+ bond rating (Fitch/Standard & Poor’s) by operating an efficient water system, focusing on minimizing expenses, prudent fiscal management and taking advantage of market opportunities when appropriate,” said SCWA Chief Financial Officer Larry B. Kulick.
The Suffolk County Water Authority is an independent public-benefit corporation operating under the authority of the Public Authorities Law of the State of New York. Serving approximately 1.2 million Suffolk County residents, the Authority operates without taxing power on a not-for-profit basis.