Clark County, Nevada, sold $340 million in bonds to improve its sewer system in less populated areas.
The serial bonds, consisting of $227 million, mature between 2024 and 2047, yielding between 2.68% and 3.78%. The issuance also includes a $34 million term bond maturing July 1, 2049, and yielding 3.92%, and a $79 million term bond maturing July 1, 2053, and yielding 3.96%. The securities received a rating of Aa1 from Moody’s Investors Service and AAA from S&P Global Ratings.
The rating “reflects the district’s large, growing service area and tax base within the Las Vegas Valley that is coterminous with nearly all of unincorporated Clark County,” according to Moody’s.
Clark County, which includes Las Vegas, has experienced high levels of development since emerging from the COVID-19 pandemic. Its economy is primarily propelled by tourism to Las Vegas’ many casinos.
With that development has come increasing pressure on the Clark County Water Reclamation District, which treats an average of 106 million gallons of water per day for the unincorporated areas of Clark County, excluding much of Las Vegas. The district supplies sewer services to 1.03 million of the county’s 2.3 million residents, who represent about 75% of Nevada’s population.
The bonds are general obligations of the district, backed by its full faith and credit. They are also secured by a pledge of net revenues from the sewer system.
BofA Securities, Inc served as underwriter on the issuance, purchasing the bonds for more than $378 million. The price reflected a premium of $38 million.