Hawkins is Bond Counsel to the 2003 Deal of the Year
The Bond Buyer awarded the 2003 Deal of the Year to the State of California Department of Water Resources for its nearly $12 Billion power supply revenue bond package, the largest municipal issuance to date. Hawkins was the Bond Counsel to this historical financing.
The bonds came in the brisk of the California energy crisis. The Department of Water Resources after new legislation was charged to resolve and negotiate the emergency purchase of power. The financing is based on a rate surcharge of electricity. These bond charges are to be imposed by the California Public Utilities Commission upon customers in the area where the three major California electric utilities companies operate.
This complex offering comprised of an array of financial products, such as a few credit enhancements such as letter of credit, bond insurance, as well as divers interest rate structure such as swaps, fixed rate, and auction rate etc… The bonds are set to mature in 20 years.
Due to this innovative financing the California energy market was stabilized and the Department of Water Resources was able to fulfilling its contract and obligations. The lead Partner that counseled on this transaction was Mr. Bruce Van Dusen.