Officially formed in 1991, SAWS serves 1.6 million people in the Greater San Antonio Bexar County Metropolitan area. SAWS administers water and wastewater services for the City of San Antonio and surrounding communities. In 2011, following passage of bills in the Texas Legislature, voters from BexarMet approved the dissolution of their utility and merged into SAWS. This process was finally completed in 2012 when BexarMet’s assets and customers officially became part of SAWS.
As part of this merger, BexarMet’s outstanding debt was to be transferred over to SAWS as well. Given the improved rating of SAWS (SR. Aa1/AA+/AA+, JR. Aa2/AA/AA) over BexarMet (A2/A/A+), upcoming call dates on BexarMet debt, and low relative interest rates, SAWS worked with the co-financial advisors to develop a plan of finance to refund the outstanding BexarMet bonds into the SAWS junior lien. This plan was developed over a year and in 2016 SAWS executed the transaction to integrate the debt of the two entities. The bonds were successfully priced in February 2016, with the transaction producing 10.8% PV savings as a percentage of refunded bonds. The client was very pleased with the multi-year transaction, and is developing a finance plan for future new money needs and identifying future refunding candidates.