Water Development Authority

Why finance through the WDA?

Lower interest rates. Due to WDA's experience, credit ratings and reputation in the capital market.

Credit enhancement and security. WDA is currently rated A- (Standard & Poor's) and has obtained competitive, low cost AAA bond insurance to further lower interest rates.

Costs of issuance. WDA pays for all the costs of the WDA bond issue. The only costs the municipalities/PSDs have to pay are local bond counsel, CPA and one-time registrar fee.

Federal disclosure requirements. Federal law requires annual secondary market disclosure for publicly issued bonds. Borrowers through the WDA are not required to provide this information.

Question Public Market Bonds WDA Loan Program
Who pays for the costs associated with a municipal/PSD bond financing? Borrower WDA pays for all costs except for local bond counsel, CPA and one-time registrar fee.
Is a municipal bond underwriter/financial advisor required? Yes No
Who gathers all the information and is responsible for compiling, printing and distributing the official statement? Borrower WDA
Who is responsible for attending to all the details of the bond sale? Borrower WDA
Who handles obtaining and paying for a credit rating for the bonds and the periodic follow-up with the credit rating agency? Borrower WDA
Who will have a better credit rating? Most municipalities and PSDs do not have a credit rating. In most cases, the WDA has a better rating. WDA currently has a credit rating of A- (Standard & Poor's) and has used the rating to obtain AAA bond insurance. WDA bonds are backed by the moral obligation of the State.
Who is responsible for complying with the Securities and Exchange Commission secondary market disclosure requirements? Borrower is required to submit updated reports at least annually. WDA. Federal law requires annual secondary market disclosure for publicly issued bonds but borrowers through the WDA are not required to provide this information.
Who pays for the on-going bank trustee and paying agent fees? Borrower WDA
Who answers the on-going questions and handles the requests for information from the bondholders, rating agency(s) and other interested parties? Borrower WDA
Who schedules the bond sale dates? Borrower when ready to enter the market. WDA sells its bonds to correspond closely with the project funding needs of municipalities/PSDs.
How are interest rates determined for the bonds? It depends on how the bonds are marketed and to whom. Interest rates are negotiated with the senior managing underwriter and are based on investor orders placed by West Virginia individuals, West Virginia institutions and national institutions.