The Suffolk County Water Authority has sold $124.93 million of long-term bonds and short-term notes at low interest rates, which will help the Authority save hundreds of thousands of dollars in interest costs.
In early April, the Authority completed a sale of a $50 million one-year fixed Bond Anticipation Note at a .375% interest rate; a $50 million three-year variable rate Bond Anticipation Note reset weekly at a fixed spread of .40% over the Securities Industry and Financial Markets Association Index (SIMFA); and $24,930,000 in Water System Revenue Refunding Bonds with an average yield of 5.06%.
The bonds came at lower rates than comparable recent issues, according to the Authority’s Chief Financial Officer, Larry B. Kulick, which he noted reflected positively on the Authority’s financial position. The funds raised will support the Authority’s capital budget, which will help the Authority to continue with infrastructure improvements that will enable the Authority to continue to provide Suffolk County residents the highest quality water at the lowest possible cost.
Fitch and Standard & Poor’s (S&P) recently assigned AAA and AA+ ratings, respectively, on the Suffolk County Water Authority’s $24.930 million Water System Revenue Refunding Bonds, series 2011. Additionally, Fitch and Standard & Poor’s (S&P) assigned ratings of F1+ and SP1+ short term rating on the Authority’s $100 million Bond Anticipation Notes, 2011A&B.
“Our excellent bond ratings keep our rates low and save our customers money,” said SCWA Chairman James F. Gaughran. “The sale of these bonds and notes are another sign that the financial community recognizes SCWA for our consistently strong financial performance.”
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.