Eastern Municipal Water District plans to price $54.62 million COPs

By Cristal Cody

Springdale, Ark., June 12 - The Eastern Municipal Water District in Riverside County, Calif., intends to price $54.62 million water and sewer revenue refunding certificates of participation, according to a preliminary official statement.

The series 2008C variable-rate COPs initially will price with a weekly interest rate.

The COPs (Aa3/AA/AA) are due July 1, 2020.

The district plans to amend a 1993B swap agreement with AIG Financial Products Corp. to hedge against interest rate fluctuations on the series 2008C COPs.

Under the 2008C swap agreement, the district will make payments to AIG at a fixed rate of 5.135% of a notional amount and AIG will make reciprocal payments equal to the amount of interest payable at the weekly rate.

Citigroup Global Markets will manage the negotiated sale.

Proceeds will be used to refund the series 1993B COPs.

Additional information was not immediately available.

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