Louisville Water has secured funding to continue improvements in its water system.
Last week, the company sold $155.54 million in bonds, of which $88 million will fund capital projects over the next several years. Additionally, $75.31 million went toward refinancing the company’s series 2009 bonds. The refunding saves rate payers $8.56 million over the next 10 years. The borrowing rate was approximately 2.27 percent.
The bond issuance follows Standard & Poor’s (S&P) and Moody’s Investors Service reaffirming their highest marks for Louisville Water. S&P affirmed a AAA rating, its highest mark, and Moody’s Investors Service affirmed its highest rating, Aaa.
Both agencies cited Louisville Water’s proactive and robust capital planning; strong financial position; and a broad, diverse, and growing service area.
The bond issuance will fund Louisville Water’s capital program with a focus on inspecting, repairing, and replacing water mains; investments in water treatment facilities; and installing new technology.
“Our strong financial position allowed us to gain funding for our capital program while at the same time saving our rate payers millions of dollars,” said Lynn Pearson, Louisville Water’s Vice President of Finance and Treasurer.
Pearson also noted that “a company-wide focus on strong fiscal management allows us to maintain favorable rates for our customers and provide best-in-class service.”
The bond sale is the first new money issuance since 2015.