The San Antonio Water System (“SAWS”) is soliciting responses to this Request for Proposals (“RFP”) from banks willing to provide liquidity for a planned issuance of approximately $150,000,000 in Subordinate Lien Variable Rate Demand Bonds (“VRDBs”). SAWS currently anticipates the following bond issues in 2025, (aside from obligations sold to the Texas Water Development Board from time to time): • Junior Lien Revenue and Refunding Bonds, (No Reserve Fund) issued to (i) generate approximately $243 million in bond proceeds to fund Capital Improvement Projects (“CIP”), (ii) refund the City of San Antonio, Texas Water System Variable Rate Junior Lien Revenue and Refunding Bonds, Series 2014B (No Reserve Fund), and (iii) pay the cost of issuance in the form of a fixed-rate issue. • Subordinate Lien Variable Rate Revenue Bonds, issued to (i) generate approximately $150 million in bond proceeds to fund CIP, and (ii) pay the cost of issuance, in the form of a Variable Rate Demand Bond (VRDB) in Daily or Weekly Mode (the “VRDB Bonds”). Current plans call for the issuance of the bonds to be issued as multimodal bonds, with the initial interest mode being a Daily or Weekly Mode. The aggregate amount available under the facility must include the principal amount of the bonds, plus 34 days of interest calculated at a rate of 12%. SAWS anticipates the issuance of the Junior Lien Revenue and Refunding Bonds and the Subordinate Lien Variable Rate Revenue Bonds in close proximity to one another, but as a part of a separate plan of finance.
