Louisville Water Company Issues $233 Million in Bonds

Sale Comes on the Heels of Highest-possible Ratings

Over the next few years Louisville Water Company will invest millions to maintain and improve the infrastructure that supplies drinking water to nearly one million people in the Louisville, Kentucky region. A successful bond sale on August 21 will help make the investments possible.

Today, Louisville Water sold $233 million in bonds, the largest sale in the Company’s 165-year history.  The bond issuance follows Standard & Poor’s (S&P) and Moody’s Investors Service assigning their highest rating designations for Louisville Water. S&P assigned a AAA rating and Moody’s assigned a Aaa rating to the Series 2025 bonds and affirmed these highest ratings for all previously issued bonds. In delivering the high ratings, both agencies cited Louisville Water’s strong financial condition, long-term planning and comprehensive rate management practices. Additionally, S&P and Moody’s noted Louisville Water’s proactive asset management programs and regionalization efforts.

“The stellar ratings put Louisville Water in an elite class of water utilities and confirms our commitment to outstanding fiscal and utility management,” said Lynn Pearson, Louisville Water’s Vice President of Finance and Treasurer.

“The investments Louisville Water will make over the next few years will have generational impacts to ensure high-quality drinking water and reliable service.”

This bond sale is the first issuance since 2022 and more than 75% of the funding supports four projects: upgrades to the Crescent Hill Water Treatment Plant (the largest plant in Kentucky), installing new residual lines for water treatment, supporting regional growth along the Interstate 65 corridor, and re-lining the Crescent Hill Reservoir.

Louisville Water provides drinking water to Louisville Metro and seven surrounding counties. Its treatment plants rank as two of the top 19 in North America for providing exceptional water quality and the distribution system also has the highest distinction for optimization from the Partnership for Safe Water.

Financial Advisor Raymond James supported Louisville Water in today’s sale. Raymond James has worked with Louisville Water on its long-term capital planning program since 2008. For the Series 2025 Bonds, Raymond James assisted the Company through the issuance and rating process and successfully brought these bonds to the market.

For today’s competitive sale, Louisville Water received seven bids and achieved a true interest cost of 4.08%.