The Texas Water Development Board (TWDB) is expected to come to market with $1.6 billion1 in State Water Implementation Revenue Fund for Texas Revenue Bonds, Series 2018B and Taxable Series 2018C.
The proceeds from the sale of the Series 2018 Bonds will be used to: (1) provide funds to finance projects to implement the State Water Plan and (2) pay the costs of the issuance of the bonds.
The Series 2018 Bonds are special limited obligations of the Board equally and ratably secured by and payable solely from a lien on the related Security, pursuant to the applicable Bond Indenture including, but not limited to: (i) all Revenues, held under the related Bond Indenture; (ii) all amounts held in the funds and accounts established under the applicable Bond Indenture (other than the Rebate Fund established for the Series 2018B Bonds and the applicable Costs of Issuance Account); and (iii) all of the proceeds of the foregoing including, without limitation, investments thereof.
The Series 2018 Bonds shall never constitute general obligations of the Board or the State of Texas within the meaning of any constitutional or statutory provision or limitation. Issuance of the Series 2018 Bonds shall not, directly, indirectly or contingently, obligate the state of Texas to levy any form of taxation therefor or make any appropriation for their payment. he security held under the 2018B Bond Indenture does not secure the Taxable Series 2018C Bonds. The security held under the 2018C Bond Indenture does not secure the Series 2018B Bonds. The Board has no taxing power. See the Preliminary Official Statement for more details.
The bonds are rated AAA by S&P and AAA by Fitch. 2
The bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement.
The bond sale offers attractive benefits including federal tax exemption on the interest payments of the Series B bonds, with prices and yields that match those available to institutional investors, and the potential for stable income, through call dates.
How to place an order
The offering is expected to price the week of September 171, 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.