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BOND REFINANCE SAVES BOARD OF WATER SUPPLY MORE THAN $7 MILLION

            HONOLULU – The Board of Water Supply (BWS) has completed an $85.2 million bond issue on its Water Revenue Refunding Bonds, which will result in an expected net savings of about $7.15 million over the life of the bonds.

“The Board of Water Supply has worked hard to prove its fiscal responsibility and strong financial position to rating agencies and other financial stakeholders,” said BWS Manager and Chief Engineer Ernest Lau.  “The bond refinancing affirms our ability to make the most sensible financial moves for our customers.  Much like refinancing a home mortgage, this effort allows the Board of Water Supply to secure a lower interest rate and therefore lower interest payments on its outstanding debt.”

By taking advantage of low interest rates and the BWS’s high credit ratings, this bond refinance is a financial move that will yield a cost savings of approximately $430,000 a year.  The bond refinancing is part of the BWS’s ongoing efforts to minimize costs and ensure fiscal stability to Oahu water ratepayers.

            Moody's Investors Service and Fitch Ratings, which establish bond ratings used when municipalities borrow money, recently affirmed the BWS’s bond rating at Aa2 and AA+, respectively, maintaining a “stable outlook” in both cases.

Contact:  Kurt Tsue, 748-5320