Central Basin Bond Sale Draws Local Investor Attention
Commerce, CA – Central Basin Municipal Water District has closed its bond refunding sale with City National Bank of Beverly Hills, Bank of the West, Kayne Anderson Capital and Citigroup. The $7.2 million sale is a milestone that was key to solidifying the District’s financial stability.
“The bond sale signifies a home-run for Central Basin. We’ve hit every mark necessary to establish financial security,” said Central Basin Finance Director Josh Betta. “This transaction along with the District’s 5-Year Financial Plan, the recent rate adjustment and positive credit rating will ensure Central Basin continues to move forward.”
In June 2016, Central Basin released its 5-Year Financial Forecast detailing the District’s actions to adjust to future fiscal conditions. As part of the forecast, the sale of the bonds allowed the District to: stabilize its bond payments that would have otherwise spiked; affirm its A1 credit rating; and sustain a positive debt coverage ratio.
Central Basin placed a total of $7.2 million in bonds in the market. City National Bank of Beverly Hills, Bank of the West and Kayne Anderson purchased $5.2 million and the remaining $2.1 million in bonds were purchased by Citigroup, the underwriter for the bond transaction.
Ron Boake, Desk Manager for the District’s underwriter Citigroup, says the degree of local investor interest reflected positively on Central Basin’s “strong presence in Los Angeles.”
For more information on Central Basin’s monthly financial reports, visit: https://www.centralbasin.org/finance.
Central Basin is a public agency that wholesales imported water to cities, mutual water companies, investor-owned utilities and private companies in southeast Los Angeles County, serving a population of 1.6 million. In addition, Central Basin provides the region with recycled water for municipal, commercial and industrial uses. Formed in 1952, Central Basin is committed to ensuring a safe and reliable water supply for the region.2016_Bond Sale Draws Local Investors.pdf