The Omaha, Nebraska, Public Power District issued $606.8 million in bonds to finance capital expenditures and refund previously issued securities.
The district sold the bonds in two series. The 2024 Series A bonds, consisting of $284.2 million, mature between 2026 and 2054, yielding between 3.05% and 3.98%. The 2024 Series B bonds, consisting of $322.5 million, mature between 2025 and 2045, yielding between 3.05% and 3.83%. The securities received a rating of Aa2 from Moody’s Investors Service and AA from S&P Global Ratings.
“In our view, key credit strengths include a strong, diverse, and growing customer base supported by an economically sound service area; the district’s proven ability to maintain robust coverage of fixed charges; and substantial liquidity,” S&P analyst Jeff Panger said in a press release.
However, S&P said it does not anticipate raising the district’s rating in the next two years, in part because of its “ambitious” capital spending plan.
The district will use the Series A proceeds to fund capital projects. The district has budgeted $727 million for capital improvements this year, according to its most recent corporate operating plan. It will use the Series B proceeds to refund bonds that it sold in 2010, 2014, and 2015.
The Omaha Public Power District provides electricity to almost 900,000 people in Omaha, the biggest city in Nebraska, and its surrounding countries. The bonds are backed by district revenue.
BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $675.9 million. The price reflected a premium of $71.2 million and a discount of $2.1 million. Barclays Capital Inc acted as financial advisor.