Santa Clara Valley Water District Revenue Bonds

We are pleased to offer Fidelity investors the opportunity to participate in the Santa Clara Valley Water District's upcoming $98 million offering.1

The Santa Clara Valley Water District is expected to come to market with $16+ million1 in Series 2019A Water System Refunding Revenue Bonds and $81+ millionin Taxable Series 2019B Water System Refunding Revenue Bonds (collectively, the "Bonds").

The Bonds are being issued to i) pay the portion of the currently outstanding Commercial Paper Certificates, Series A (Tax-Exempt) and Commercial Paper Certificates, Series B (Taxable) issued to finance projects for the Water Utility System and ii) pay costs of issuance of the 2019 Bonds.

The Bonds are secured by the Parity Master Resolution on District Water Utility System Revenues, and are payable from Net Water Utility System Revenues. The obligation of the District to pay the principal and interest on the 2019 Bonds does not constitute a debt of the District of Santa Clara, or of the State of California, or of any political subdivision. Refer to the Preliminary Official Statement for additional details.

The bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement. The bonds are rated "Aa1" by Moody's and "AA+" by Fitch.2

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 the call dates. And, for California residents, the tax-exempt portion of the issuance have federal and state tax-exemption on the bond coupon payments.

How to place an order

The offer is expected to price the week of April 8, 20191, although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online 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 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.