VRA priced its most recent VPFP bonds, the Series 2020C issuance, on October 27, 2020, and closed the transaction on November 18, 2020, with a total par amount of $168.535 million. The true interest cost for the entire transaction was 1.71% (including tax-exempt and taxable bonds), and the all-in true interest cost was 2.01% (including tax-exempt and taxable bonds).
This latest VPFP bond issuance provided financing for a wide variety of local government projects. A total of 28 loans were made to 21 different Virginia localities. Nearly all of the borrowers (18 of 21) were able to refund prior debt obligations (including both VRA and non-VRA bonds), generating over $10.9 million in net present value debt service savings.
The Bedford Regional Water Authority (BRWA) was one of the borrowers in the Fall Pool. BRWA borrowed $3.73 million for 15 years to finance a wastewater treatment plant energy savings performance contract. This project helps BRWA better serve local residents by improving the facility’s operability. With the low-cost financing provided through the contract, BRWA will replace aging and failed equipment at its Central Wastewater Treatment Plant that will result in significant energy, operational and maintenance savings. BRWA also plans to capture the expected savings to offset the debt service on the loan used to make the facility improvements.
“VRA is once again providing affordable financing that enables us to improve our infrastructure and operate more efficiently. VRA’s outstanding communication with us throughout the financing process clearly displayed the VRA’s commitment to excellent customer service,” said Nathan Carroll, BRWA Assistant Executive Director.
“VRA is always so great to work with, the entire process went seamlessly, and we were kept up to date as information became available. Peter D'Alema is great to work with and always available to answer questions. This was the third new money transaction I have been involved in for the BRWA (and its predecessor the PSA) and will definitely not be the last,” said Jill Underwood, BRWA Director of Finance.
The VRA team is proud to help local governments across Virginia look for innovative, cost-effective ways to serve their residents.