OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue
San Francisco, CA 94102
Date: January 11, 2022
To: Commissioner Anson Moran, President
Commissioner Newsha Ajami, Vice President
Commissioner Sophie Maxwell
Commissioner Tim Paulson
Commissioner Ed Harrington
Through: Dennis Herrera, General Manager
From: Charles Perl, Deputy CFO
Subject: Results of Recent Competitive Bond Sales for
Wastewater Enterprise and Power Enterprise
BACKGROUND
The San Francisco Public Utilities Commission (SFPUC) recently sold, via competitive sale, Wastewater Revenue Bonds and Wastewater Revenue Notes for the Wastewater Enterprise, and Power Revenue Bonds for the Power Enterprise. The sales of the Wastewater Revenue Bonds and Wastewater Revenue Notes were approved by the Commission on October 26, 2021; the sale of the Power Revenue Bonds was approved on November 9, 2021. The following sets forth the results of each of the sales.
WASTEWATER REVENUE BONDS
On November 16th, underwriter bids were received for Series A and Series B of the Wastewater Revenue Bonds. The following are the results of the sale.
$297,880,000 2021 Series AB Wastewater Revenue Bonds:
Ratings : Aa2/Moody’s, AA/ S&P
Series A (Green Bonds):
Final maturity 30 years
Number of bids 8
Winning bid (True Interest Cost - TIC) 3.00% - BofA Securities
Series B:
Final maturity 30 years
Number of bids: 8
Winning bid (TIC) 3.21% - Citigroup
Aggregate TIC (Series A & B) 3.03%
Aggregate Yield to Call - YTC 1.65%
WASTEWATER REVENUE NOTES
On November 18th, underwriter bids were received for Series A and Series B of the Wastewater Revenue Notes. The following are the results of the sale.
$347,465,000 2021 Series AB Wastewater Revenue Notes:
Ratings : Aa2/Moody’s, AA/ S&P
Series A (Green Notes):
Final maturity 4 years
Number of bids 9
Winning bid (TIC) 0.74% - J.P. Morgan
Series B (Green Notes):
Final maturity 5 years
Number of bids 10
Winning bid (TIC) 0.81% - Citigroup
Aggregate TIC (Series A & B) 0.77%
Aggregate YTC 0.75%
POWER REVENUE BONDS
On December 8th, underwriter bids were received for Series A and Series B of the Power Revenue Bonds. The following are the results of the sale.
$124,000,000 2021 Series AB Power Revenue Bonds:
Ratings : AA/S&P, AA-/ Fitch
Series A (Green Bonds):
Final maturity 30 years
Number of bids 9
Winning bid (TIC) 2.57% - RBC Capital Markets
Series B:
Maturity 30 years
Number of bids 8
Winning bid (TIC) 2.75% - RBC Capital Markets
Aggregate TIC (Series A & B) 2.63%
Aggregate YTC 1.48%
Services of the San Francisco Public Utilities Commission 1 RESULTS OF RECENT COMPETITIVE BOND SALES FOR
WASTEWATER ENTERPRISE AND POWER ENTERPRISE
January 11, 2022
Richard Morales, Capital Finance Director
Services of the San Francisco Public Utilities Commission 2 Background
Services of the San Francisco Public Utilities Commission • Wastewater Revenue Bonds/Notes - No vember sales
o Approved by Commission on Oct. 26th
o Offered via competitive sales
o Wastewater Ratings affirmed - Aa2/Moody’s; AA/S&P
• Power Revenue Bonds - December sale
o Approved by Commission on Nov. 9th
o Offered via competitive sale
o Power Ratings affirmed - AA/S&P; AA-/Fitch
• Market conditions stable and favorable at time of sales o Strong demand and aggressive bidding
• “Green’ series offered in each transaction
Services of the San Francisco Public Utilities Commission Wastewater Revenue Bonds
• $297,880,000 2021 Series AB Wastewater Revenue Bonds
• Series A (Green Bonds) sale:
Sale date Nov. 16th
Final maturity 30 years
Number of bids 8
Winning bid TIC (True Interest Cost) 3.00% - BofA Securities • Series B sale:
Sale date Nov. 18th
Final maturity 30 years
Number of bids: 8
Winning bid (TIC) 3.21% - Citigroup
• Aggregate TIC (Series A & B) 3.03%
• Aggregate YTC (Yield to Call) 1.65%
3 Services of the San Francisco Public Utilities Commission Wastewater Revenue Notes
• $347,465,000 2021 Series AB Wastewater Revenue Notes
• Series A (Green Notes) sale:
Sale date Nov. 18th
Final maturity 4 years
Number of bids 9
Winning bid (TIC) 0.74% - J.P. Morgan
• Series B (Green Notes) sale:
Sale date Nov. 18th
Final maturity 5 years
Number of bids: 10
Winning bid (TIC) 0.81% - Citigroup
• Aggregate TIC (Series A & B) 0.77%
• Aggregate YTC 0.75%
4 Services of the San Francisco Public Utilities Commission Power Revenue Bonds
• $124,000,000 2021 Series AB Power Revenue Bonds
• Series A (Green Bonds) sale:
Sale date Dec. 8th
Final maturity 30 years
Number of bids 9
Winning bid (TIC) 2.57% - RBC Capital
Markets
• Series B sale:
Sale date Dec. 8th
Final maturity 30 years
Number of bids: 8
Winning bid (TIC) 2.75% - RBC Capital
Markets
• Aggregate TIC (Series A & B) 2.63%
• Aggregate YTC 1.48%
5 Services of the San Francisco Public Utilities Commission 6 Questions