Gas Works Revenue Bonds 17th Series A&B have provided Philadelphia with $315 million for Philadelphia Gas Works (PGW) infrastructure investments.
Improvements will focus on maintaining a safe, reliable, and efficient system.
Sixty-six investors placed orders equaling more than 5.6 times the amount of bonds being sold.
The sale refinanced approximately $119 million in debt to achieve nearly $7.8 million in net present value savings over the next 11 years. Debt service was $3.2 million lower than initially estimated.
The final combined all-in true interest cost was approximately 4.14 percent.
Credit spreads were as much as seven basis points better than the last bond issuance in 2020.
“We were pleased that PGW received such a strong reception from investors during a heavy week for issuance,” Jackie Dunn, Philadelphia city treasurer, said. “This demand is a testament to PGW’s sound financial management and the strength of its credit.”
Prior to the sale, Fitch Ratings affirmed PGW’s rating of A- and improved its outlook from stable to positive, Standard & Poor’s Global Ratings gave PGW a rating of A, and Moody’s Investors Service gave the company a rating of A3.
Both Moody’s and Standard & Poor’s affirmed PGW stable outlook.
The bond sale closed Sept. 18.