HJ Sims Underwrites Tax-Exempt Bonds to Finance Infrastructure Improvements for Greater Ouachita Water Company
“Our company recently utilized Jimmy Rester and the HJ Sims team to underwrite certain revenue bonds. Their knowledge and direction were invaluable in securing the financing necessary to make a wide variety of upgrades to our sewer and waterworks systems. I highly recommend the HJ Sims team for any financing projects required for capital investments and look forward working with them in the future.”
 –Philip McQueen, President, Greater Ouachita Water Company
Partnered Right®
GOWC is a non-profit corporation that oversees a water system that serves more than 24,000 water system customers and 6,000 wastewater system customers. GOWC’s system is located throughout parts of Ouachita Parish, located in northern Louisiana, as well as a few areas outside of the parish. Northeast Utilities, Inc. has effectively operated the system since 2018 and benefits from economies of scale and streamlined operations.
Structured Right®
GOWC utilized bond issuances in the past to fund various capital expenditures and construction projects. Similarly, the 2024 bond issuance sought to finance fifteen additional infrastructure improvements to the GOWC’s system. The financing team successfully secured bond insurance from Build America Mutual Assurance Company. As a result, HJ Sims was able to maximize the distribution of the issue despite not having an underlying credit rating.
Executed Right®
The financing strategy was carefully structured to maximize proceeds for the system while maintaining the Company’s financial stability. The bond issue was designed to attract a broad base of institutional investors and provide the necessary funds for crucial system improvements. With robust participation from numerous institutional bond funds, the financing team was able to decrease yields at final pricing, further maximizing bond proceeds for capital improvements. Working closely with GOWC’s management, HJ Sims was able to negotiate a bond insurance premium 60% below what was paid on GOWC’s most recent bond issue.
Financed Right®
In June of 2024, Sims successfully underwrote $20,940,000 in tax-exempt bonds, maturing in 2053 at an average coupon of 4.37%. This customized financing solution enables Greater Ouachita Water Company to focus on its core mission of providing reliable water and wastewater services to its customers while preserving capital for future growth opportunities.
For more information, please contact:
James Rester
901.652.7378