VRA Deals $146M for SRF

The Virginia Resources Authority expects today to issue $146.1 million of clean water refunding bonds. The debt will refund some or all of the clean-water state revolving fund bonds issued in 2004, 2007, and 2008.

The VRA expects to save between $50 million and $190 million with this deal, said executive director Sheryl Bailey.

The SRF provides loans to local municipalities for sewage and water control projects. Arlington County, at 16% of the portfolio, is the largest borrower.

The Series 2010A bonds are secured by loan repayments and reserve funds derived from federal grants and state funds. VRA has issued four series of clean water bonds since 2005 and had $1.7 billion of debt outstanding before today’s deal.

The bonds are rated triple-A by Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings.

With “significant” bondholder protection, the bonds would continue to pay debt service even if 77.6% of borrowers defaulted over the next four years, according to Fitch’s report.

Morgan Stanley is the lead underwriter with BB&T Capital Markets, Goldman, Sachs & Co., JPMorgan, and Loop Capital Markets LLC as co-underwriters. McGuireWoods LLP is bond counsel and Troutman Sanders LLP is representing the underwriters. Davenport & Co and Strategic Solutions Center LLC are the financial advisers.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER