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SFPUC secures BMO credit facility to support wastewater interim funding program
Summary
Commission approved a package of documents for a $150 million aggregate revolving credit and term loan with BMO Bank to support wastewater interim funding and the commercial paper program; staff said the three-year facility carries a fee of ~0.31% and will allow deferral of bond issuance.
San Francisco — The San Francisco Public Utilities Commission approved a revolving credit and term loan agreement with BMO Bank and related documents to support the wastewater interim funding program, the commission was told.
Staff presented the package as part of the utility’s broader interim funding strategy designed to delay bond issuances and reduce long-term borrowing costs for ratepayers. The documents submitted authorize (1) a revolving credit and term loan agreement with BMO Bank in an aggregate principal amount not to exceed $150 million and (2) associated fee and agent agreements and offering materials.
The staff presentation said the three‑year facility carries a fee of about 0.31% (31 basis points). Staff explained the facility will back commercial paper issuance, allow the controller to release appropriations from reserve and enable the utility to defer issuing long-term bonds until market conditions are preferable. Staff cautioned that pricing would increase if the utility's bond ratings were downgraded, but said competitive market bids produced favorable terms.
The commission approved the resolution as amended in the staff report by unanimous roll-call vote. Staff said additional facilities will be brought to the commission in the coming months to expand interim funding capacity across utilities.
