During its March 10 meeting, the El Dorado Irrigation District Board of Directors received an update on the success of the district’s recent bond refinancing. EID Director of Finance Mark Price noted that the results of the Feb. 13 bond refinancing were outstanding.
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“The results exceeded all of our expectations in reduction of debt as well as net present value savings,” he said.
The district reduced its outstanding debt as a result of this bond refinancing by $11.4 million and saw a present value savings of $17.2 million.
“EID’s track record in the capital markets has been stellar,” said Dave Houston, managing director and head of the water group at Citigroup Global Markets. “In the first 20 minutes, we generated more orders than we had bonds available.”
Prior to the transaction, EID staff met with both rating agencies, Moody’s Investors Service and Standard & Poor’s Ratings Services, to discuss the Preliminary Official Statement in preparation for the agencies to issue their ratings on the bonds. As a result, Moody’s issued an A1 rating with a stable outlook and Standard & Poor’s issued an A-plus with a stable outlook.
“These ratings show that EID is a safe and secure investment and this good news bodes well for the district,” said Houston.
“This is a tremendous savings for EID and our ratepayers — $17 million saved in refinancing the debt is huge,” said Board President Alan Day.
“We have a really solid financial plan,” said General Manager Jim Abercrombie. “You can see that in the market and in the savings to our ratepayers. Going forward we need to focus on the financial plan and make sure it is sound and continues to meet the debt service coverage.”