San Antonio To Sell $763.8 Million of Electric and Gas Systems Revenue Refunding Bonds

By Josh Beckerman

The City of San Antonio plans to sell $763.8 million of Electric and Gas Systems revenue refunding bonds.

Proceeds from $489.5 million of Series 2024D bonds will be used to refund short-term variable rate obligations consisting of commercial paper and junior lien obligations, according to documents posted on MuniOS Tuesday.

The Series 2024D securities will include $281.2 million of serial bonds with maturities ranging from 2029 through 2044 and two term bonds totaling $208.3 million, one maturing in 2049 and the other in 2054.

The $274.3 million of Series 2024E bonds, which will be used to refund commercial paper and flex notes obligations, will include $159.5 million of serial bonds with maturities ranging from 2035 through 2044. Meanwhile, a $114.7 million term bond will be due in 2049.

Pricing is expected on Aug. 28.

The bonds are secured by a first and prior lien on the pledge of the net revenue of the city's systems. CPS Energy, owned by the city of San Antonio, had operating revenue of $3.36 billion for the fiscal year ended Jan. 31. CPS has more than 950,000 electric customers and over 389,000 natural gas customers, according to its website.

The securities are expected to be federally tax-exempt and not subject to the alternative minimum tax.

Fitch Ratings and S&P Global Ratings rated the bonds AA-. They have ratings of Aa2 from Moody's Investors Service.

J.P. Morgan and RBC Capital Markets are co-lead underwriters.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

August 21, 2024 17:44 ET (21:44 GMT)

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