News Story

Pittsburgh, PA — The Pittsburgh Water & Sewer Authority D/b/a Pittsburgh Water priced $156,425,000 in Water and Sewer System First Lien Revenue Bonds, Series A of 2026 on February 24, 2026. The bonds were sold via negotiated sale and are expected to be delivered on or about March 10, 2026.

The 2026 Bonds were issued as new money to (i) retire a portion of the outstanding principal on the Authority’s 2025 Capital Line Note held by PNC Bank, National Association, (ii) fund capital improvements to Authority facilities, (iii) fund the debt service reserve requirement, and (iv) pay costs of issuance. The bonds are secured by a first lien on the revenues of the Authority after payment of current expenses and certain funds held by the trustee under the Senior Indenture. The Senior Indenture requires revenues to cover 125% of senior lien debt service. The Authority reported senior debt service coverage of 1.79x in fiscal year 2024, with net revenues available for debt service of $114,834,000.

Pittsburgh Water has invested approximately $898 million in capital improvements since 2018 as part of a generational effort to modernize aging water, sewer, and stormwater infrastructure, with approximately $1.2 billion budgeted for needed upgrades over the next five years. The Authority filed a multi-year rate increase proposal with the Pennsylvania Public Utility Commission in June 2025 seeking approximately $84.4 million in additional revenue phased over 2026 and 2027 to support its 2025–2029 Capital Improvement Plan, which includes lead service line replacement and major pump station upgrades. Pittsburgh Water serves approximately 116,000 residential, commercial, and industrial customers in the City of Pittsburgh and surrounding communities.

The bonds were priced with all maturities carrying a 5.000% coupon. Yields ranged from 2.180% on the 2028 maturity to 4.550% on the 2056 term bond. The bonds are subject to an optional call on September 1, 2036, at par. The offering includes two term bonds: $36,795,000 due September 1, 2052, priced at a yield of 4.460%; and $36,635,000 due September 1, 2056, priced at a yield of 4.550%.

Ramirez & Co., Inc. and Morgan Stanley & Co. LLC served as co-senior managing underwriters, along with Huntington Capital Markets and Raymond James & Associates, Inc. as co-managing underwriters. Eckert Seamans Cherin & Mellot, LLC and Gosfield Law LLC served as co-Bond Counsel. Public Resources Advisory Group, Inc. and SOA Financial served as co-Financial Advisors to the Authority.

The bonds are rated A2 with a Positive Outlook by Moody’s Ratings and A+ with a Positive Outlook by S&P Global Ratings.