Miami-Dade County, Florida, sold $534.4 million in bonds to finance improvements to its water and sewer facilities and refund previously issued securities.
The county issued the bonds in two series. The Series 2024A bonds, consisting of $320.6 million, mature between 2048 and 2054, yielding between 3.98% and 4.3%. The Series 2024B bonds, consisting of $213.9 million, mature between 2027 and 2042, yielding between 2.9% and 3.64%. The securities received a rating of AA- from Fitch Ratings, Aa3 from Moody’s Investors Service, and AA from S&P Global Ratings.
The rating reflects “the system’s very strong financial profile in the context of very strong revenue defensibility and operating risk profiles,” Fitch analysts wrote.
The issuance marked the second major bond sale by Miami-Dade County this month. Earlier in May, the county sold $344 million in bonds to finance improvements at a nuclear plant in the southern Florida city of Homestead.
The county will use the Series 2024A proceeds to fund upgrades to drinking water and wastewater facilities. The Series 2024B proceeds will refund water and sewer revenue bonds that the county sold in 2019.
The bonds are special, limited obligations of the county, secured by net revenue from its water and sewer system. The system recorded $372.3 million in net operating revenue last fiscal year, according to the official statement accompanying the sale of the bonds.
Goldman Sachs & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $583.8 million. The price reflected a premium of $51.3 million and a discount of $2 million. Public Resources Advisory Group, Inc acted as financial advisor.