Who won this year's Deal of the Year award for the Southwest Region? The winner will be honored on Thursday, December 1 at 583 Park Avenue in Manhattan, and later that night will compete with winners in the seven other categories for the right to be named The Bond Buyer's 2016 Deal of the Year.
VOICE OVER: As vigorous as the water planning process is in Texas. It had never been accompanied by a dedicated funding source for the projects in the state water plan. In 2013, shortly after the worst one year drought in Texas in its recorded history. The state's leaders enacted unprecedented legislation. That made possible a one time upfront $2 billion transfer from the state's rainy day fund for water project financing. It also created the State Water Implementation Fund for Texas Swift, and the State Water Implementation Revenue Fund for Texas Swift. Charged with administering this program. The Texas Water Development Board worked for two years with the financing team to develop a groundbreaking leveraging structure.
In October 2015, the board issued $810 million in swift revenue bonds. The deal received $2.1 billion in orders and achieved a true increase cost at 3.6%. Saving the local borrowers, an estimated $108 million in debt service. The projects funded in this transaction include transmission pipelines, canal lining and sea water desalination planning. Ultimately, those projects will produce more than 1.5 million acre feet of water. Helping ensure the vitality of the Texas economy. Rain or shine.