Springs Utilities to offer revenue bonds

Colorado Springs Utilities will offer $153.3 million in series 2012C bonds to individuals and other investors Sept. 12, according to a press release.

The majority of the bonds – about $110.6 million – will be used to refinance outstanding debt at lower interest rates, and the remaining $42.7 million will help finance utility system expansion and existing system upgrades.

The bonds have been rated AA by Standard & Poor’s and Fitch, and Aa2 by Moody’s. CSU says it will give priority to individual investors.

Maturities are expected to range from 2013 to 2042 with a minimum investment of $5,000. Bonds will be sold with the assistance of lead manager J.P. Morgan Securities, and co-managers Barclays Capital, BNY Mellon Capital Market and U.S. Bancorp Investments.

Interested investors can view the preliminary official statement and should contact one of the above firms or their financial adviser to purchase bonds.

 

The city-owned utility provides electric, natural gas, water and wastewater service to Colorado Springs, several military installations and surrounding residential areas.

Issue amounts are preliminary and subject to change.