Beaverton, Oregon, issued $30.4 million in bonds to finance improvements to its water supply system.
The bonds mature between 2025 and 2043, yielding between 2.44% and 3.25%. They pay interest at 5%. The securities received a rating of AA+ from S&P Global Ratings.
The issuance is just the latest injection of funding into the city’s water system. In January, Beaverton won a federal grant funding $10 million worth of improvements, including projects to replace its water mains, install new wells, and upgrade storage tanks.
Beaverton will use the bond proceeds to fund “additions, replacements, expansions, or improvements” to its water system, which is highly regarded within Oregon. In 2016, the state’s health authority assigned Beaverton’s drinking water system an “outstanding performance” rating.
Beaverton, which borders Portland, is perhaps best known for being the world headquarters for sports apparel giant Nike, Inc. The company is by far the largest employer in the city; almost one in ten workers in the city is employed by Nike, according to the official statement accompanying the sale of the bonds.
The bonds are special obligations of the city, payable by revenue from its water system.
Morgan Stanley & Co LLC served as underwriter on the issuance. PFM Financial Advisors LLC acted as municipal advisor.