RNS Number : 5839D
San Francisco Public Utilities Comm
03 April 2025
Notice of Taxable Target Bonds Offer Purchase Prices
Dated April 2, 2025
RELATING TO THE
INVITATION TO TENDER BONDS FOR PURCHASE, DATED March 17, 2025
made by
public utilities commission of the City and County of San Francisco
to the Bondholders described herein of all or any portion of certain maturities of its
TAXABLE TARGET BONDS
SAN FRANCISCO WATER REVENUE BONDS,
2019 Series ABC, 2019 Sub-Series A Bonds (Refunding - Federally Taxable) (WSIP) (Green Bonds)
2019 Series ABC, 2019 Sub-Series B Bonds (Refunding - Federally Taxable) (Hetch Hetchy)
2019 Series ABC, 2019 Sub-Series C Bonds (Refunding - Federally Taxable) (Local Water Main)
2020 Series EFGH, 2020 Sub-Series F Bonds (Refunding - Federally Taxable) (Non-WSIP)
2020 Series EFGH, 2020 Sub-Series G Bonds (Refunding - Federally Taxable) (Local Water)
2020 Series EFGH, 2020 Sub-Series H Bonds (Refunding - Federally Taxable) (Hetch Hetchy Water)
TAX-EXEMPT TARGET BONDS
SAN FRANCISCO WATER REVENUE BONDS,
2016 Series AB, 2016 Sub-Series A Bonds (Refunding)
2017 Series DEFG, 2017 Sub-Series D Bonds (Refunding) (Green Bonds)
The purpose of this Notice of Taxable Target Bonds Offer Purchase Prices, dated April 2, 2025 (the "Notice of Taxable Target Bonds Offer Purchase Prices") is to set forth the Offer Purchase Prices for the Taxable Target Bonds. All other terms relating to the Invitation (hereinafter defined) remain unchanged. Terms used herein and not otherwise defined are used as defined in the Invitation.
Pursuant to the Invitation to Tender Bonds for Purchase, dated March 17, 2025 (as supplemented by the Pricing Notice, dated March 24, 2025, the Preliminary Acceptance Notice, dated April 1, 2025, and as it may be further amended or supplemented, the "Invitation"), the Public Utilities Commission of the City and County of San Francisco (the "Commission") invited Bondholders to offer to tender Target Bonds for cash: (i) for the Taxable Target Bonds, at the applicable Offer Purchase Prices based on a Fixed Spread set forth in the Pricing Notice to be added to the yield on the relevant Benchmark U.S. Treasury Security (also set forth in the Pricing Notice), and (ii) for the Tax-Exempt Target Bonds, at the applicable Offer Purchase Prices as set forth in the Pricing Notice, plus, for both (i) and (ii), Accrued Interest on the Target Bonds purchased to but not including the Settlement Date.
The Offer Purchase Prices, expressed as a dollar amount per $100 principal amount, for each maturity and corresponding CUSIP of the Taxable Target Bonds that were preliminarily accepted pursuant to the Preliminary Acceptance Notice set forth in Attachment A hereto, were calculated by the Commission based on the Purchase Yields determined by adding (a) the applicable Fixed Spread set forth in the Pricing Notice to (b) the relevant Treasury Security Yield for each applicable CUSIP of the Taxable Target Bonds. The Offer Purchase Prices were calculated using the market standard bond pricing formula as of the Settlement Date using the relevant Purchase Yield, the coupon of the relevant Taxable Target Bond, and the maturity date for each Taxable Target Bond, except for the Taxable Target Term Bonds, which were priced using their respective average life dates, as shown in Attachment A, as their assumed maturity dates. The Treasury Security Yields were determined at approximately 10:00 a.m., New York City time, on April 2, 2025, in accordance with the Invitation.
On the Final Acceptance Date (i.e. April 2, 2025, unless such date is extended by the Commission in accordance with the Invitation), the Commission will announce its acceptance for purchase of the Target Bonds, if any, from among those Target Bonds of each CUSIP preliminarily accepted for purchase as listed in Attachment A and Attachment B of the Preliminary Acceptance Notice by giving notice via the Final Acceptance Notice. The Commission has no obligation to accept for purchase any tendered Target Bonds. The Commission's obligation to pay for Target Bonds validly tendered (and not validly withdrawn) and accepted pursuant to the Invitation is subject to the satisfaction of or waiver of the terms and conditions of the Invitation (including, inter alia, satisfaction or waiver of the Financing Conditions) on or prior to the Settlement Date.
Should the Commission determine to purchase less than all of the tendered Target Bonds of a particular CUSIP, the principal amount of such Target Bonds that it will purchase will be allocated among such tendered Target Bonds on a pro rata basis as described in the Invitation.
The Invitation, including the 2025 Refunding POS, is available: (i) at the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access website, currently located at http://emma.msrb.org, using the CUSIP numbers for the Target Bonds, and (ii) on the website of the Information Agent and Tender Agent at https://www.globic.com/sfpuc.
Any questions are to be directed to the Information Agent and Tender Agent at (212) 227-9622.
ATTACHMENT A
TAXABLE TARGET BONDS
The tables below provide the respective Offer Purchase Price for each CUSIP and corresponding maturity of the Taxable Target Bonds preliminarily accepted for purchase.
Series and Subseries
CUSIP No.[1]
Maturity Date (November 1)
Average Life Date[2]
Interest Rate
Outstanding Principal Amount
Preliminary Principal Amount Accepted for Purchase
Benchmark U.S. Treasury Security[3]
Fixed Spread
Treasury Security Yield[4]
Purchase Yield
Offer Purchase Price[5]
2019 Series ABC, 2019 Sub-Series A
79765R4T3
2028
N/A
2.533%
$1,310,000
$700,000
3-Year
- 15.0 bps
3.840%
3.690%
96.193
79771FFG7
2029
N/A
2.593
2,980,000
-
-
-
-
-
-
79771FFH5
2030
N/A
2.703
3,060,000
110,000
5-Year
- 10.0 bps
3.897
3.797
94.580
79771FFJ1
2031
N/A
2.803
29,910,000
9,075,000
7-Year
- 10.0 bps
4.011
3.911
93.660
79771FFK8
2032
N/A
2.953
2,835,000
-
-
-
-
-
-
79771FFL6
2033
N/A
3.053
2,925,000
1,175,000
10-Year
+ 0.0 bps
4.142
4.142
92.233
79765R4Z9
2034
N/A
3.153
2,885,000
1,055,000
10-Year
+ 7.0 bps
4.142
4.212
91.750
79765R5A3
2039
7/16/2037
3.303
153,555,000
50,655,000
10-Year
+ 29.0 bps
4.142
4.432
89.413
79765R5B1
2043
7/11/2042
3.473
183,475,000
10,325,000
30-Year
+ 31.0 bps
4.506
4.816
84.389
2019 Series ABC, 2019 Sub-Series B
79765R5C9
2034
4/1/2033
3.153
4,735,000
-
-
-
-
-
-
79765R5D7
2041
12/20/2038
3.523
11,435,000
-
-
-
-
-
-
2019 Series ABC, 2019 Sub-Series C
79765R5E5
2034
4/2/2033
3.153
5,160,000
-
-
-
-
-
-
79765R5F2
2041
12/20/2038
3.523
12,455,000
-
-
-
-
-
-
2020 Series EFGH, 2020 Sub-Series E
79771FAA5
2041
5/18/2038
2.825
141,290,000
27,000,000
10-Year
+ 34.0 bps
4.142
4.482
83.726
79771FAB3
2047
6/2/2045
2.945
41,430,000
7,000,000
30-Year
+ 36.0 bps
4.506
4.866
75.520
2020 Series EFGH, 2020 Sub-Series F
79771FAJ6
2028
N/A
1.618
1,505,000
1,235,000
3-Year
- 15.0 bps
3.840
3.690
93.184
79771FAK3
2029
N/A
1.718
1,530,000
80,000
5-Year
- 15.0 bps
3.897
3.747
91.602
79771FAL1
2030
N/A
1.788
5,720,000
2,055,000
5-Year
- 10.0 bps
3.897
3.797
90.048
79771FAM9
2031
N/A
1.988
5,830,000
2,250,000
7-Year
- 10.0 bps
4.011
3.911
88.998
79771FAN7
2032
N/A
2.188
5,955,000
-
-
-
-
-
-
79771FAP2
2033
N/A
2.288
6,090,000
255,000
10-Year
+ 0.0 bps
4.142
4.142
86.778
79771FAQ0
2034
N/A
2.388
6,235,000
-
-
-
-
-
-
79771FAR8
2035
N/A
2.488
6,385,000
-
-
-
-
-
-
79771FAS6
2041
10/25/2039
2.845
37,330,000
3,785,000
10-Year
+ 37.0 bps
4.142
4.512
82.380
79771FAT4
2047
6/4/2045
3.145
51,605,000
4,200,000
30-Year
+ 37.0 bps
4.506
4.876
77.956
(cont'd) ATTACHMENT A
TAXABLE TARGET BONDS
Series and Subseries
CUSIP No.[6]
Maturity Date (November 1)
Average Life Date[7]
Interest Rate
Outstanding Principal Amount
Preliminary Principal Amount Accepted for Purchase
Benchmark U.S. Treasury Security[8]
Fixed Spread
Treasury Security Yield[9]
Purchase Yield
Offer Purchase Price[10]
2020 Series EFGH, 2020 Sub-Series G
79771FBB2
2028
N/A
1.618%
$1,815,000
$265,000
3-Year
- 15.0 bps
3.840%
3.690%
93.184
79771FBC0
2029
N/A
1.718
4,610,000
75,000
5-Year
- 15.0 bps
3.897
3.747
91.602
79771FBD8
2030
N/A
1.788
5,485,000
2,500,000
5-Year
- 10.0 bps
3.897
3.797
90.048
79771FBE6
2031
N/A
1.988
12,170,000
1,155,000
7-Year
- 10.0 bps
4.011
3.911
88.998
79771FBF3
2032
N/A
2.188
2,380,000
130,000
7-Year
- 5.0 bps
4.011
3.961
88.540
79771FBH9
2034
N/A
2.388
1,140,000
-
-
-
-
-
-
79771FBJ5
2035
N/A
2.488
325,000
-
-
-
-
-
-
79771FBK2
2043
6/29/2040
3.095
10,705,000
-
-
-
-
-
-
2020 Series EFGH, 2020 Sub-Series H
79771FBS5
2028
N/A
1.618
720,000
-
-
-
-
-
-
79771FBT3
2029
N/A
1.718
735,000
-
-
-
-
-
-
79771FBU0
2030
N/A
1.788
2,740,000
1,105,000
5-Year
- 10.0 bps
3.897
3.797
90.048
79771FBV8
2031
N/A
1.988
2,790,000
-
-
-
-
-
-
79771FBW6
2032
N/A
2.188
2,850,000
-
-
-
-
-
-
79771FBX4
2033
N/A
2.288
2,915,000
-
-
-
-
-
-
79771FBY2
2034
N/A
2.388
2,985,000
2,880,000
10-Year
+ 5.0 bps
4.142
4.192
85.934
79771FBZ9
2035
N/A
2.488
3,055,000
-
-
-
-
-
-
79771FCA3
2041
10/25/2039
2.845
17,860,000
-
-
-
-
-
-
79771FCB1
2047
6/4/2045
3.145
24,685,000
4,600,000
30-Year
+ 37.0 bps
4.506
4.876
77.956
[1] CUSIP is a registered trademark of the American Bankers Association. CUSIP information herein is provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. This information is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. CUSIP numbers are provided for convenience of reference only. None of the Commission, the Dealer Manager, the Information Agent and Tender Agent nor their respective agents or counsel assumes responsibility for the accuracy of such numbers.
[2] Taxable Target Term Bonds priced to their average life dates.
[3] Except for the 30-Year Benchmark Treasury Security which was the "old long bond" (maturity date November 15, 2054, 4.500% CUSIP 912810UE6), each Benchmark Treasury Security was the most recently auctioned "on-the-run" United States Treasury Security for the maturity indicated as of date and time that the Offer Purchase Prices for the Target Bonds were set.
[4] The bid-side yield on each Benchmark Treasury Security to be used in establishing the Offer Purchase Prices for the Taxable Target Bonds were equal the bid-side yield of the applicable Benchmark Treasury Security as quoted on the Bloomberg Bond Trader FIT1 series of pages at approximately 10:00 a.m., New York City time, on April 2, 2025.
[5] The Offer Purchase Prices for the Taxable Target Bonds were derived from the Purchase Yields and are expressed as a dollar amount per $100 principal amount of the Taxable Target Bonds and exclude Accrued Interest. Accrued Interest on purchased Taxable Target Bonds will be paid by the Commission to but not including the Settlement Date in addition to the applicable Purchase Price.
[6] CUSIP is a registered trademark of the American Bankers Association. CUSIP information herein is provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. This information is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. CUSIP numbers are provided for convenience of reference only. None of the Commission, the Dealer Manager, the Information Agent and Tender Agent nor their respective agents or counsel assumes responsibility for the accuracy of such numbers.
[7] Taxable Target Term Bonds priced to their average life dates.
[8] Except for the 30-Year Benchmark Treasury Security which was the "old long bond" (maturity date November 15, 2054, 4.500% CUSIP 912810UE6), each Benchmark Treasury Security was the most recently auctioned "on-the-run" United States Treasury Security for the maturity indicated as of date and time that the Offer Purchase Prices for the Target Bonds were set.
[9] The bid-side yield on each Benchmark Treasury Security to be used in establishing the Offer Purchase Prices for the Taxable Target Bonds were equal the bid-side yield of the applicable Benchmark Treasury Security as quoted on the Bloomberg Bond Trader FIT1 series of pages at approximately 10:00 a.m., New York City time, on April 2, 2025.
[10] The Offer Purchase Prices for the Taxable Target Bonds were derived from the Purchase Yields and are expressed as a dollar amount per $100 principal amount of the Taxable Target Bonds and exclude Accrued Interest. Accrued Interest on purchased Taxable Target Bonds will be paid by the Commission to but not including the Settlement Date in addition to the applicable Purchase Price.
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