Los Angeles to Offer $977.7 Million of Bonds For Water System Upgrades
By Patrick Sheridan
The City of Los Angeles's Department of Water and Power is selling $977.7 million of tax-exempt bonds to help finance capital improvements to its water system.
The 2025 Series C Water System Revenue Bonds have maturities ranging from 2026 to 2055, with two term bonds also being offered, according to the preliminary official statement posted Friday on MuniOS.
Pricing is scheduled for Nov. 6, with closing slated for Nov. 25, according to the roadshow document.
Interest on the bonds is payable starting on July 1 and again on January 1.
The bonds are special obligations of the department and payable only from money in the Water Revenue Fund, and not from any other money the department has, or from the city.
Proceeds will be used for capital improvements necessary to comply with increasing water quality standards. Projects include expanding and upgrading the existing distribution system, replacing aging infrastructure, protecting existing water supplies, developing new water resources and meeting other regulatory requirements, according to the preliminary official statement.
Major components of the program are expected to include chlorination stations and treatment facilities, groundwater remediation and cleanup, water meter replacement, water system security improvements and the relining and coating of aqueduct piping.
Proceeds will also be used to refund all or a portion of previous bonds and to pay the costs of issuance.
The department is the largest municipal utility in the U.S., with 8,007 megawatt electrical capacity, and provides an average of 435 million gallons of water per day to 4 million residents and businesses in the city, according to its website.
Moody's and Fitch Ratings assigned Aa2 and AA- ratings, respectively, to the bonds.
RBC Capital Markets is the senior manager of the offering.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
October 27, 2025 14:02 ET (18:02 GMT)
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