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CPS Energy sale of revenue bonds achieves $36.9 million in savings
CPS Energy sold $320.5 million of its Electric and Gas Systems Senior Lien Revenue Refunding Bonds in New York this week. Proceeds from the sale will be used to refund bonds previously issued in 2007, resulting in a net present value savings of $36.9 million.
“Our tax-exempt bonds were very well received in the market, with the demand for the bonds coming in more than double our supply,” said Chief Financial Officer and Group Executive Vice President of Financial & Administrative Services Paula Gold-Williams. “These savings will factor in to our long term financing plan, benefiting our customers over the life of the bonds.”
The senior lien bonds received strong ratings again by each of the three main credit ratings agencies:
- Fitch Ratings Inc.: AA+
- Moody’s Investor Service: Aa1
- Standard & Poor’s: AA
Excerpts from the Bond Rating Agency Reports
Moody’s Investor Service: “The Aa1 rating is based on the strength of the utility’s broad and growing service area economy; the significant competitive retail rate advantage, despite high General Transfer amounts; the competitive, reliable and diverse power supply; a conservative financial record including strong financial liquidity; and, a sound debt structure and risk management program.”
Standard & Poor’s: “The rating was supported by several factors, including CPS Energy’s deep and diverse service area economy that remains one of the healthiest in Texas, and a strong financial risk profile, characterized by a consistent financial performance and supported by robust financial management practices…”
Fitch Ratings Inc.: “CPS Energy’s financial performance has consistently remained in a strong range for a number of years.”
About CPS Energy
CPS Energy is the nation’s largest municipally owned natural gas and electric company, providing service to 772,000 electric and 337,000 natural gas customers in the Greater San Antonio area. With our AA+ credit rating, one of the best in the industry, we offer best in class reliability and the lowest rates among the top 10 largest U.S. cities. We recognize our role as a community partner and are continuously focused on job creation, economic development and educational investment. Powered by our people, our investment in the community is demonstrated through our employees’ generosity in giving $1 million to United Way. We are also committed to investing in clean energy. CPS Energy is the number one wind energy buyer among the nation’s municipally owned utilities and number one in Texas for solar generation. For more information, visit newsroom.cpsenergy.com.