Salt River Project’s board and council recently approved the refunding sale of more than $761 million of 2016 Series A public power revenue bonds, which will ultimately save customers more than $151 million over the next 21 years.
The sale is expected to be one of SRP’s largest, according to SRP Associate General Manager Aidan McSheffrey, SRP’s chief financial executive. He said this is strictly a refunding transaction, with no new money for capital projects or construction. SRP has no specific plans for a bond sale after this transaction.
McSheffrey said SRP’s bonds received a very good response in the municipal bond market from buyers, much like SRP’s last transaction in May 2015 in which more than $924 million in bonds were sold, which produced more than $300 million for capital projects and construction.
“We were very pleased to have seen such strong market support, especially since this was a large transaction in a relatively unstable market for issuers following the unexpected results of the presidential election,” Steve Hulet, SRP’s treasurer and senior director of financial services, said.
The tax-exempt bonds mature in 2038 and carry ratings of Aa1 from Moody’s Investors Service and AA from S&P Global Ratings.
SRP is the third-largest public power utility in the United States and is the largest provider of electricity to the greater Phoenix metropolitan area.