Liquidity Facility

REQUEST FOR PROPOSALS (RFP)

Solicitation No. R-25-005-TG

The San Antonio Water System (“SAWS”) is soliciting responses to this Request for Proposals (“RFP”) from banks willing to provide liquidity for a planned issuance of approximately $150,000,000 in Subordinate Lien Variable Rate Demand Bonds (“VRDBs”).

SAWS currently anticipates the following bond issues in 2025, (aside from obligations sold to the Texas Water Development Board from time to time):

• Junior Lien Revenue and Refunding Bonds, (No Reserve Fund) issued to (i) generate approximately $243 million in bond proceeds to fund Capital Improvement Projects (“CIP”), (ii) refund the City of San Antonio, Texas Water System Variable Rate Junior Lien Revenue and Refunding Bonds, Series 2014B (No Reserve Fund), and (iii) pay the cost of issuance in the form of a fixed-rate issue.

• Subordinate Lien Variable Rate Revenue Bonds, issued to (i) generate approximately $150 million  in bond proceeds to fund CIP, and (ii) pay the cost of issuance, in the form of a Variable Rate Demand Bond (VRDB) in Daily or Weekly Mode (the “VRDB Bonds”).  Current plans call for the issuance of the bonds to be issued as multimodal bonds, with the initial interest mode being a Daily or Weekly Mode.  The aggregate amount available under the facility must include the principal amount of the bonds, plus 34 days of interest calculated at a rate of 12%.

SAWS anticipates the issuance of the Junior Lien Revenue and Refunding Bonds and the Subordinate Lien Variable Rate Revenue Bonds in close proximity to one another, but as a part of a separate plan of finance.

SAWS maintains outstanding obligations at the senior lien, junior lien, and subordinate lien level. There is a total of $88.94 million of debt currently outstanding at the senior lien level. During the term of the Credit Agreement, the City will covenant not to issue Additional Senior Lien Obligations (except for any refunding of Senior Lien Obligations currently outstanding that results in debt service savings).

The Subordinate Lien Variable Rate Revenue Bonds and the City obligations arising under the Credit Agreement to be procured pursuant to this RFP for liquidity support will be issued under the SAWS ordinances as “subordinate lien obligations”, secured by and payable from a lien on and pledge of the Net Revenues of the System that is subordinate to the lien thereon and pledge thereof that secures the Senior Lien Obligations and the Junior Lien Obligations and on parity with the lien thereon and pledge thereof that secures the other outstanding Subordinate Lien Obligations, including the existing Commercial Paper obligations

Estimated Timeline

July 28, 2025 ................................................................................... RFP Released

August 5, 2025  by 3:00 p.m. CDT.......................... Receipt of Written Questions Due

August 8, 2025 by 3:00 p.m. CDT....................................... Q & A Posted to Website

August 18, 2025  by 2:00 p.m. CDT.................................................... Proposals Due

August 2025............................................................................ Proposals Evaluated

August 2025........................................................................ Interviews, if necessary

September 2025................................................................................. SAWS Award

September 2025......................................................... Non-Selection Notices mailed

October 21, 2025................................................................. Estimated Closing Date

The dates listed above are subject to change without notice.