Denver Water board to consider bond plan capped at $300 million
The proposal would refinance commercial paper and provide up to $100 million for capital improvements; optional short-term-rate bonds would be sold only if they offer an interest-rate advantage.
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Denver Water’s board is scheduled to review a bond plan capped at $300 million on Nov. 4. The proposed borrowing would refinance commercial paper and provide up to $100 million for capital improvements, according to the bond briefing paper included in the board agenda.
The plan calls for long-term, fixed-rate Series 2026A bonds. It also allows up to $75 million in Series 2026B put bonds, which would use short-term rates and be sold only if they offer an interest-rate advantage over long-term fixed-rate borrowing. The $75 million is included within the $300 million combined cap, and the plan could proceed with Series 2026A bonds alone.
The board is expected to consider the financing resolution and offering documents at its Nov. 18 meeting. If approved, Denver Water expects to sell the bonds in late November and issue them in December. The sale depends on board approval and market conditions; the briefing says some or all of the transaction could be deferred if market conditions are unfavorable.