NEW YORK -- HRSD conducted a successful sale of the $224 million Subordinate Wastewater Revenue Bonds, Series 2025A (the Bonds) on July 8, 2025.  The bond sale acts as a “bridge loan” resulting in a net present value savings estimated at $10.71 million relative to an existing federally subsidized loan program that HRSD previously closed on in 2024.  

HRSD plans on paying off the Bonds with this loan program one year from now when they mature.

There was strong demand for HRSD’s bonds, with orders from over 20 separate investor accounts totaling an amount six times greater than the Bonds offered. The strong demand allowed HRSD to improve (lower) the interest rate on the Bonds following the initial order period. The Bonds were sold via a negotiated sale with JP Morgan as the senior managing underwriter.

Prior to the bond sale, Moody’s Investors’ Service assigned HRSD’s Subordinate Wastewater Revenue Bonds, Series 2025A a short-term rating of MIG 1 (best quality) and affirmed an Aa1 long-term rating on outstanding revenue bonds.  S&P Global Ratings assigned HRSD a short-term rating of SP-1+ (very strong capacity to pay debt service) and affirmed a long-term rating of  “AA+”. Both ratings agencies indicated the outlook for these ratings as stable. 
 

About HRSD: HRSD is a political subdivision of the Commonwealth of Virginia created by public referendum in 1940 and currently serves 20 cities and counties in southeast Virginia and the Eastern Shore, an area with a population of 1.9 million.

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HRSD’s promise is to treat wastewater and recover natural resources to protect public health and the environment. A political subdivision of the Commonwealth of Virginia, HRSD was created by public referendum in 1940 and currently serves 20 cities and counties in southeast Virginia, an area with a population of 1.9 million.