Water district refinances bonds

The Upper Trinity Regional Water District (UTRWD) recently refinanced two existing bonds that will save UTRWD customers nearly $8 million, taking advantage of low interest rates and its strong credit rating.

Upper Trinity’s credit rating with Moody’s is A3 for both the Regional Treated Water System and Lakeview Regional Water Reclamation System.  Likewise, the credit rating with Standard & Poor’s is A- and A+, respectively.

Upper Trinity’s Regional Treated Water System provides drinking water to more than 25 communities and utilities within its service area. 

The Lakeview Regional Water Reclamation System provides wastewater treatment services to cities and towns of Highland Village, Bartonville, Double Oak, Lantana, Corinth, Lake Dallas, Hickory Creek, and Shady Shores.

“Working with FirstSouthwest, our financial advisor, we were able to refinance a 1999 bond for the Regional Treated Water System saving approximately $6 million dollars in interest costs; and, we also refinanced a 2003 bond for the Lakeview Regional Water Reclamation System saving nearly $2 million,” said Thomas E. Taylor, UTRWD Executive Director. 

“These transactions take advantage of currently low interest rates on municipal bonds, but more significantly, it reflects UTRWD’s excellent financial stability and vision.”

Additionally, UTRWD was also able to convert a portion of its commercial paper (short-term debt) into long-term revenue bonds.  This allowed UTRWD to lock-in low interest, favorable terms for the Regional Treated Water System.

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