The Department of Water and Power of the City of Los Angeles Power System Revenue Bonds

We are pleased to announce that Fidelity Capital Markets has been chosen as a co-manager for the Department of Water and Power of the City of Los Angeles’s upcoming $500 million1 Power System System Revenue bond sale.

What is the opportunity?

The Department of Water and Power ("the Department") is expected to come to market with $500 million1 in Power System Revenue Bonds, 2017 Series A.

The Department is issuing its Series A Bonds for the purpose of providing funds pay costs of Capital Improvements of the Power System and to pay certain Costs of Issuance. The Series A Bonds will be special obligations of the Department payable only from the Power Revenue Fund and not out of any other fund or moneys of the Department or the City of Los Angeles.

These bonds are rated "Aa2" by Moody's, "AA-" by S&P and "AA-" by Fitch.2

Traditionally, municipal bonds will be subject to optional call features, and term bonds will generally have a Mandatory Sinking Fund feature. Please review the structure on the day of the pricing before placing an order.

Key benefits

The bond sale offers attractive benefits to individual investors including prices and yields that match those available to institutional investors, and the potential for stable income through call dates. And, for California residents, federal and state tax-exemption on the bond coupon payments.

How to place an order

The offering is expected to price the week of January 161, 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 AlertsLog In Required  and see our Municipal Bond New Issue Offerings.

Additional resources

Municipal Bonds
Review the risks and benefits of investing in municipal bonds.

California State Treasurer
Learn more about how to invest in California bonds and notes.

Municipal Bonds: Understanding Credit Risk (PDF)
In this SEC investor bulletin, learn more about assessing credit risks when purchasing municipal bonds.

MSRB—Risks and opportunities of interest rate movements (PDF)
Read about the impact of market interest rate movement on municipal bond prices and yields from the MSRB Education Center.