The San Antonio City Council has approved a plan by city-owned CPS Energy to issue up to $380 million of gas and electric revenue bonds.
The ordinance allows the bonds to be issued as a combination of conventional tax-exempt debt and taxable Build America Bonds. The city sold $375 million of BABs for CPS Energy in July 2009.
The sale is expected in the first or second week of March. CPS trustees approved the sale in early February.
The total includes $210 million for electrical generating facilities, $100 million for electric distribution, $20 million for electric transmission, and $20 million for the gas distribution network.
Approximately $100 million of the proceeds will be used by CPS Energy to reimburse itself for work already completed.
San Antonio’s electric and gas revenue bonds are rated AA by Standard & Poor’s, AA-plus by Fitch Ratings, and Aa1 by Moody’s Investors Service.
The City Council also approved a $12 million bond issue to refund outstanding debt from a 2001 issue by the San Antonio Municipal Facilities Corp. to finance acquisition of a city office building.
M.E. Allison & Co. is the lead underwriter on the issue, which is to go to market the first week of March. RBC Capital Markets is co-manager.
