City & County of Honolulu to Offer $300M in Wastewater Revenue Bonds

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REPORT FROM CITY & COUNTY OF HONOLULU – The City and County of Honolulu is preparing to sell up to $300 million in Wastewater System Revenue Bonds to help pay for a variety of important repairs and upgrades.

The sale, authorized by City Council approval of Resolution 12-210, will include up to $150 million in new money bonds and up to $150 million in economic refunding of existing wastewater revenue bonds.


The Wastewater Bonds are expected to be sold with a retail only order period September 19, 2012, and with an institutional order period to commence September 20, 2012.

Proceeds will help pay for important work on wastewater pump stations, pipes and facilities in Ala Moana, Chinatown, Kailua, Kalihi, Kaneohe, Manoa, Nuuanu, Palolo, Sand Island, Honouliuli, Wahiawa, Waimalu and other neighborhoods.

In 2011, Moody’s and Fitch rated the City’s Wastewater Revenue bonds “Aa2/AA,” respectively. Ratings for this issue are expected September 14, 2012.

The Wastewater Bonds will pay semi-annual interest and will be sold in denominations of $5,000, or multiples thereof.  Further, the Wastewater Bonds will be exempt fromHawaii and federal income taxes.

Bank of America Merrill Lynch will serve as the lead underwriter for the offering, with Piper Jaffray & Co. serving as a co-manager. A Hawaii based selling group will also be utilized to market the Wastewater Bonds to local retail investors.

Anyone interested in purchasing Wastewater Bonds should contact their broker at BofA Merrill Lynch, Piper Jaffray & Co., or any member of the selling group.