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+ million1 in 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
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.