By Adam L. Cataldo
The Orlando Utilities Commission plans to sell $272.3 million of bonds to help fund its five-year capital plan and pay down existing debt.
The commission will issue $186.5 million of Utility System Revenue Bonds Series 2025 A, and $85.8 million of Series 2025 B Utility System Revenue Refunding Bonds, according to a preliminary official statement posted Tuesday on MuniOS.
Bonds sold as part of Series A mature from October 2028 through October 2045. That sale also includes a $59.9 million term bond due in October 2050. Securities issued as part of Series B will mature from October 2028 through October 2035.
The bonds are backed by pledge of net revenue earned by the commission from its operation of the utility system. That system includes electric, water, and chilled water divisions, along with lighting and back-up generation services.
The bonds are expected to be available for delivery on or about Feb. 13.
Money raised from the Series A sale will pay for projects involving clean energy and alternative water sources, grid hardening, and core growth and operations, along with issuance costs, according to the official statement.
Proceeds from the Series B sale will pay for issuance costs and refund all or portion of the commission's outstanding Series 2015 A bonds. About $94.9 million of that debt, which pays an interest rate of 5% and reaches final maturity in 2035, is still outstanding, according to the official statement.
The five-member commission oversees a utility that provides service to about 57,00 residential and consumer customers in Orlando, Fla., along with portions of Orange and Osceola counties.
Moody's and Fitch Ratings assigned long-term ratings of Aa2 and AA to both series of 2025 bonds.
Lead underwriters on the sale are Morgan Stanley and Barclays.
Write to Adam L. Cataldo at adam.cataldo@wsj.com
(END) Dow Jones Newswires
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