The bond sale consists of tax-exempt DC Water, Public Utility Subordinate Lien Revenue Refunding Bonds Series 2016A. DC Water is an independent authority of the District, providing retail water distribution, wastewater treatment, and collection and disposal services to the District of Columbia and certain counties in Maryland and Virgina.
Proceeds from the sale will be used to refund DC Water's outstanding debt and pay the cost of issue Series 2016A bonds. These bonds are rated "AA" by S&P.2
The bonds are special, limited obligations of DC Water, payable solely from the authority's net revenues. These net revenues are used to secure other loans as well such as the Outstanding Senior Debt, and those loans and any new Senior Debt issued, will take precedent over Series 2016A bonds. These bonds are not obligations of the District of Columbia and DC Water Authority has no taxing power.
DC Water's derives most of its income from the fees and rates charged for use of its service.
The bond sale offers attractive benefits to individual investors who are residents of the District of Columbia, including federal and state tax exemption on interest payments, prices and yields that match those available to institutional investors, and the potential for stable income.
How to place an order
The offering is expected to price the week of January 18, although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders onlineLog In Required or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts or visit our Municipal Bond New Issue Offerings page.