RFP 2024-09 James River Water Authority Interim Financing

Fluvanna County, Virginia, through the James River Water Authority (JRWA), is seeking proposals for interim financing of up to $30 million. The interim financing is to fund the design, construction, and other project costs associated with the development of a new water intake facility, pump station, and raw water pipeline project. The Authority intends to repay the interim financing through long-term financing to be issued by the Virginia Pooled Financing Program once all necessary conditions have been met. Responses to the Request for Proposals (RFP) are due by May 15, 2024, and the Authority expects to select a lender and approve financing documents by May 8, 2024. The interim financing would have a maturity date of June 30, 2025, and the Authority is seeking the lowest-cost financing with a straightforward closing process. The interim financing will be secured by a pledge of JRWA's revenues as well as moral obligation pledges from Louisa and Fluvanna Counties.

The RFP is open to any qualified lender or financial institution. JRWA has not previously obtained credit ratings, but Fluvanna County is rated Aa2 by Moody's. The Authority expects to ultimately finance the project through the Virginia Pooled Financing Program, subject to meeting certain terms and conditions set by the Virginia Resources Authority. The total value of the interim financing is up to $30 million, and the Authority is seeking proposals for either a drawdown bond or fully drawn financing at closing.