San Francisco gives preliminary results of tender offer for water revenue bonds

By Mary-Katherine Stinson

Lexington, Ky., July 18 – Public Utilities Commission of the City and County of San Francisco announced the preliminary results of its offer to buy bonds from several series of water revenue bonds, according to a notice.

The offer, which started June 28, covers taxable bonds and tax-exempt bonds. It expired at 5 p.m. ET on July 14.

The 2019 sub-series A, 2020 sub-series E and 2017 sub-series D bonds detailed below are green bonds.

The 2019 sub-series C bonds are local water main bonds.

The 2020 sub-series G bonds are local water bonds.

As of the preliminary acceptance date of July 17, the results are detailed below:

Taxable bonds

The commission has preliminarily decided to accept for purchase from the taxable bonds:

• All of the $970,000 tendered bonds from its $3,805,000 outstanding 2.371% 2019 series ABC, 2019 sub-series A bonds due 2026 (Cusip: 79765R4R7) with pricing to be based on the three-year U.S. Treasury and a negative 5 basis points indicative fixed spread;

• All of the $2,035,000 tendered bonds from its $3.9 million outstanding 2.483% 2019 series ABC, 2019 sub-series A bonds due 2027 (Cusip: 79765R4S5) with pricing to be based on the five-year U.S. Treasury and a 20 bps indicative fixed spread;

• All of the $2.69 million tendered bonds from its $4 million outstanding 2.533% 2019 series ABC, 2019 sub-series A bonds due 2028 (Cusip: 79765R4T3) with pricing to be based on the five-year U.S. Treasury and a 20 bps indicative fixed spread;

• All of the $970,000 tendered bonds from its $4,105,000 outstanding 2.593% 2019 series ABC, 2019 sub-series A bonds due 2029 (Cusip: 79765R4U0) with pricing to be based on the seven-year U.S. Treasury and a 31 bps indicative fixed spread;

• All of the $575,000 tendered bonds from its $4,215,000 outstanding 2.703% 2019 series ABC, 2019 sub-series A bonds due 2030 (Cusip: 79765R4V8) with pricing to be based on the seven-year U.S. Treasury and a 33 bps indicative fixed spread;

• All of the $525,000 tendered bonds from its $31,095,000 outstanding 2.803% 2019 series ABC, 2019 sub-series A bonds due 2031 (Cusip: 79765R4W6) with pricing to be based on the 10-year U.S. Treasury and a 47 bps indicative fixed spread;

• All of the $40,000 tendered bonds from its $4,055,000 outstanding 2.953% 2019 series ABC, 2019 sub-series A bonds due 2032 (Cusip: 79765R4X4) with pricing to be based on the 10-year U.S. Treasury and a 49 bps indicative fixed spread;

• None of the bonds were tendered or accepted for purchase from its $4.18 million outstanding 3.053% 2019 series ABC, 2019 sub-series A bonds due 2033 (Cusip: 79765R4Y2) with pricing to be based on the 10-year U.S. Treasury and a 55 bps indicative fixed spread;

• All of the $1,425,000 tendered bonds from its $4.31 million outstanding 3.153% 2019 series ABC, 2019 sub-series A bonds due 2034 (Cusip: 79765R4Z9) with pricing to be based on the 10-year U.S. Treasury and a 59 bps indicative fixed spread;

• All of the $155.34 million tendered bonds from its $308,895,000 outstanding 3.303% 2019 series ABC, 2019 sub-series A bonds due 2039 (Cusip: 79765R5A3) with pricing to be based on the 10-year U.S. Treasury and a 79 bps indicative fixed spread;

• All of the $20,865,000 tendered bonds from its $204.34 million outstanding 3.473% 2019 series ABC, 2019 sub-series A bonds due 2043 (Cusip: 79765R5B1) with pricing to be based on the 30-year U.S. Treasury and an 83 bps indicative fixed spread;

• None of the bonds were tendered or accepted for purchase from its $5.32 million outstanding 3.153% 2019 series ABC, 2019 sub-series C bonds due 2034 (Cusip: 79765R5E5) with pricing to be based on the 10-year U.S. Treasury and a 57 bps indicative fixed spread;

• None of the bonds were tendered or accepted for purchase from its $12,455,000 outstanding 3.523% 2019 series ABC, 2019 sub-series C bonds due 2041 (Cusip: 79765R5F2) with pricing to be based on the 10-year U.S. Treasury and an 80 bps indicative fixed spread;

• $149.89 million bonds tendered, out of which $130 million were accepted for purchase, from the $293,605,000 outstanding of an original $300,005,000 issue of 2.825% 2020 series EFGH, 2020 sub-series E bonds due 2041 (Cusip: 79771FAA5) with pricing to be based on the 10-year U.S. Treasury and an 80 bps indicative fixed spread;

• All of the $2.99 million tendered bonds from its $8,475,000 outstanding 1.14% 2020 series EFGH, 2020 sub-series G bonds due 2026 (Cusip: 79771FAZ0) with pricing to be based on the three-year U.S. Treasury and a negative 5 bps indicative fixed spread;

• All of the $2,025,000 tendered bonds from its $8,575,000 outstanding 1.34% 2020 series EFGH, 2020 sub-series G bonds due 2027 (Cusip: 79771FBA4) with pricing to be based on the five-year U.S. Treasury and a 20 bps indicative fixed spread;

• All of the $6,885,000 tendered bonds from its $8.7 million outstanding 1.618% 2020 series EFGH, 2020 sub-series G bonds due 2028 (Cusip: 79771FBB2) with pricing to be based on the five-year U.S. Treasury and a 20 bps indicative fixed spread;

• All of the $4.23 million tendered bonds from its $8.84 million outstanding 1.718% 2020 series EFGH, 2020 sub-series G bonds due 2029 (Cusip: 79771FBC0) with pricing to be based on the seven-year U.S. Treasury and a 31 bps indicative fixed spread;

• All of the $3.52 million tendered bonds from its $9,005,000 outstanding 1.788% 2020 series EFGH, 2020 sub-series G bonds due 2030 (Cusip: 79771FBD8) with pricing to be based on the seven-year U.S. Treasury and a 33 bps indicative fixed spread;

• All of the $6.35 million tendered bonds from its $18.52 million outstanding 1.988% 2020 series EFGH, 2020 sub-series G bonds due 2031 (Cusip: 79771FBE6) with pricing to be based on the 10-year U.S. Treasury and a 47 bps indicative fixed spread;

• All of the $7.8 million tendered bonds from its $10.18 million outstanding 2.188% 2020 series EFGH, 2020 sub-series G bonds due 2032 (Cusip: 79771FBF3) with pricing to be based on the 10-year U.S. Treasury and a 49 bps indicative fixed spread;

• All of the $1.11 million outstanding 2.288% 2020 series EFGH, 2020 sub-series G bonds due 2033 (Cusip: 79771FBG1) were tendered and accepted for purchase with pricing to be based on the 10-year U.S. Treasury and a 55 bps indicative fixed spread;

• None of the bonds were tendered or accepted for purchase from its $1.14 million outstanding 2.388% 2020 series EFGH, 2020 sub-series G bonds due 2034 (Cusip: 79771FBH9) with pricing to be based on the 10-year U.S. Treasury and a 59 bps indicative fixed spread;

• All of the $840,000 tendered bonds from its $1,165,000 outstanding 2.488% 2020 series EFGH, 2020 sub-series G bonds due 2035 (Cusip: 79771FBJ5) with pricing to be based on the 10-year U.S. Treasury and a 62 bps indicative fixed spread; and

• None of the bonds were tendered or accepted for purchase from its $10,705,000 outstanding 3.095% 2020 series EFGH, 2020 sub-series G bonds due 2043 (Cusip: 79771FBK2) with pricing to be based on the 30-year U.S. Treasury and an 83 bps indicative fixed spread.

All of the preliminary total purchased amounts are subject to change, subject to market conditions.

The commission stated it reserves the right to increase the accepted purchase amount up to the entire principal tendered for purchase, $149.89 million, or to decrease the amount purchased from the preliminary principal accepted for purchase, $130 million, for the 2020 series EFGH, 2020 Sub-Series E bonds to comply with applicable tax law.

Tax-exempt bonds

From the tax-exempt bonds:

• None of the $11,785,000 tendered bonds were accepted for purchase from its $20.53 million outstanding 5% 2015 series A bonds due 2027 (Cusip: 79765RD89) at an indicative purchase price of 105.393;

• All of the $12,425,000 tendered bonds from its $21.58 million outstanding 5% 2015 series A bonds due 2028 (Cusip: 79765RD970) at an indicative purchase price of 105.78;

• All of the $12.1 million tendered bonds from its $22,685,000 outstanding 5% 2015 series A bonds due 2029 (Cusip: 79765RE21) at an indicative purchase price of 106.037;

• All of the $8.39 million tendered bonds from its $19.76 million outstanding 5% 2015 series A bonds due 2030 (Cusip: 79765RF95) at an indicative purchase price of 106.044;

• All of the $2.63 million tendered bonds from its $25 million outstanding 5% 2015 series A bonds due 2031 (Cusip: 79765RE47) at an indicative purchase price of 106.056;

• All of the $6.89 million tendered bonds from its $26.28 million outstanding 5% 2015 series A bonds due 2032 (Cusip: 79765RE54) at an indicative purchase price of 106.088;

• All of the $5,965,000 tendered bonds from its $27.49 million outstanding 4% 2015 series A bonds due 2033 (Cusip: 79765RE62) at an indicative purchase price of 104.959;

• None of the bonds were tendered or accepted for purchase from its $28.61 million outstanding 4% 2015 series A bonds due 2034 (Cusip: 79765RE70) at an indicative purchase price of 104.684;

• None of the $500,000 tendered bonds were accepted for purchase from its $25.29 million outstanding 2015 series A bonds due 2035 (Cusip: 79765RF87) at an indicative purchase price of 104.378;

• All of the $15.77 million tendered bonds from its $31,135,000 outstanding 5% 2015 series A bonds due 2036 (Cusip: 79765RE96) at an indicative purchase price of 106.143;

• None of the $13.84 million tendered bonds were accepted for purchase from its $51,135,000 outstanding 5% 2016 series AB, 2016 sub-series A bonds due 2029 (Cusip: 79765RH69) at an indicative purchase price of 109.817;

• None of the $32.35 million tendered bonds were accepted for purchase from its $53.46 million outstanding 4% 2016 series AB, 2016 sub-series A bonds due 2030 (Cusip: 79765RH77) at an indicative purchase price of 105.883;

• All of the $18.19 million tendered bonds from its $34,135,000 outstanding 5% 2016 series AB, 2016 sub-series A bonds due 2031 (Cusip: 79765RH85) at an indicative purchase price of 109.83;

• All of the $9,105,000 tendered bonds from its $35,875,000 outstanding 5% 2016 series AB, 2016 sub-series A bonds due 2032 (Cusip: 79765RH93) at an indicative purchase price of 109.84;

• All of the $13.88 million tendered bonds from its $37.71 million outstanding 5% 2016 series AB, 2016 sub-series A bonds due 2033 (Cusip: 79765RJ26) at an indicative purchase price of 109.849;

• All of the $19,765,000 tendered bonds from its $39.67 million outstanding 5% 2016 series AB, 2016 sub-series A bonds due 2034 (Cusip: 79765RJ34) at an indicative purchase price of 109.875;

• All of the $28,915,000 tendered bonds from its $41,745,000 outstanding 5% 2016 series AB, 2016 sub-series A bonds due 2035 (Cusip: 79765RJ42) at an indicative purchase price of 109.885;

• None of the $8.81 million tendered bonds were accepted for purchase from its $43.67 million outstanding 4% 2016 series AB, 2016 sub-series A bonds due 2036 (Cusip: 79765RJ59) at an indicative purchase price of 104.356;

• None of the $9,535,000 tendered bonds were accepted for purchase from its $18.1 million outstanding 5% 2017 series DEFG, 2017 sub-series D bonds due 2030 (Cusip: 79765R2K4) at an indicative purchase price of 112.219;

• All of the $2.43 million outstanding 4% 2017 series DEFG, 2017 sub-series D bonds due 2031 (Cusip: 79765R2N8) were tendered with $0 accepted for purchase at an indicative purchase price of 107.258;

• All of the $5,085,000 tendered bonds from its $12.55 million outstanding 5% 2017 series DEFG, 2017 sub-series D bonds due 2031 (Cusip: 79765R2M0) at an indicative purchase price of 112.228;

• All of the $15.02 million tendered bonds from its $46,855,000 outstanding 5% 2017 series DEFG, 2017 sub-series D bonds due 2032 (Cusip: 79765R2P3) at an indicative purchase price of 112.241;

• All of the $41,625,000 tendered bonds from its $59,875,000 outstanding 5% 2017 series DEFG, 2017 sub-series D bonds due 2033 (Cusip: 79765R2Q1) at an indicative purchase price of 112.257;

• All of the $22.03 million tendered bonds from its $61.54 million outstanding 5% 2017 series DEFG, 2017 sub-series D bonds due 2034 (Cusip: 79765R2R9) at an indicative purchase price of 112.283; and

• All of the $3,015,000 tendered bonds from its $11,105,000 outstanding 5% 2017 series DEFG, 2017 sub-series D bonds due 2035 (Cusip: 79765R2S7) at an indicative purchase price of 112.194.

Details

Funding will come from two series of new bonds that will be issued on the settlement date and other available moneys of the commission.

The determination of the purchase prices for the taxable bonds will take place at approximately 10 a.m. ET on July 19.

Final acceptance will be on July 20.

The offer will settle on Aug. 10.

Jefferies LLC is the dealer manager for the offer (800 567-8567, muni_underwriting@jefferies.com).

The information and tender agent for the invitation is Globic Advisors (212 227-9622, rstevens@globic.com).

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