- Pricing of borrowing has been moved to ‘day to day’ status
- Deal had been expected to sell on Wednesday: pricing wire
A bond offering by the Los Angeles Department of Water and Power that was expected to price this week moved to “day to day status” on Monday amid the wildfires in Southern California, according to people familiar with the matter, who asked not to be identified discussing the deal.
Bank of America Corp., the lead underwriter of the transaction, sent a notice that the transaction has been moved to day-to-day status, according to a pricing wire viewed by Bloomberg. That designation typically signals a deal will price when conditions warrant. The utility was set to offer water system revenue bonds for capital projects, according to preliminary bond documents dated Jan. 7. It was initially set to price on Wednesday, according to a separate pricing wire.
Power system bonds sold by the utility have dropped in the past week after the devastating wildfires in Los Angeles. The department is the largest municipal utility in the US, responsible for providing electric and water services to about 3.8 million residents. As of Dec. 31, the system had about $6.6 billion of water-revenue debt outstanding, bond documents say.
Sheryl Lee, a spokesperson for Bank of America, declined to comment. A spokesperson for LADWP didn’t immediately provide a response to requests for comment.
Bloomberg Markets
By Amanda Albright
January 13, 2025