The former Harrisburg Authority, which oversees the capital city's drinking and wastewater systems, has closed on its first bond financing deal since it lost its investment-grade rating in January 2011.
Capital Region Water completed a $22 million refinancing loan agreement Thursday with New York City-based Amalgamated Bank, the bank announced.
The six-year loan, which will save the water system nearly $4 million in the first two years, will provide interim cash flow relief and reduce pressure on rate increases.
The authority lost its rating because its operations were closely tied to Harrisburg's financial situation. The financially distressed city recently left state receivership in the wake of asset monetization deals that included the sale of its debt-ridden incinerator.
The deal with Amalgamated served as a catalyst for structural improvements to all of the system's debt, which may help it recapture its rating.