Case Study: Red Sulphur Public Service District
Over the past half-dozen years as Financial Advisor to the Red Sulphur District (in Peterstown, WV), Davenport has assisted with developing a pro-forma financial model of the utility system, refinancing of the District’s revenue bond debt and development of recommendations for key utility financial ratios including days cash on hand and debt service coverage. Working with the District’s bond counsel, Steptoe & Johnson LLC, we collectively made recommendations to optimize both refinancings, which required approvals of the State’s Public Utility Commission. The savings resulting from the refinancings were structured in a targeted time period in order to maximize the District’s cash flow flexibility. This approach provided the ability to effectively layer in additional new debt for capital needs while minimizing future rate increases.