The Guam Waterworks Authority priced $118 million in speculative-grade revenue bonds Tuesday.
The deal, carrying ratings of BB from Fitch Ratings and Ba2 from Moody’s Investors Service, priced to yield between 4% for 2015 maturities and 5.875% for 2040 maturities on the triple-tax-exempt bonds.
Proceeds will be used to help the water agency complete projects called for in a legal agreement with the federal government
Citi managed the deal, according to Thomson Reuters data.
According to a news release posted by a television station on Guam, the authority received more than $360 million in orders after accelerating the pricing by one week to beat the surge in supply in the coming weeks.
About $500,000 in bonds were sold to Guam residents.
“The aggressive marketing and strategic timing based on market conditions were key,” Guam Economic Development Authority administrator Tony Blaz said in the release.
Pacific Public Finance Group, LLP was financial adviser.
