The Confederated Tribes of the Warm Springs Reservation of Oregon

Summary

On Wednesday, December 15, 2021, KBCM closed on the Hydroelectric Revenue Bonds, Series 2021 (Pelton-Round Butte Project) (Taxable Fixed Rate) (Green Bonds) (the “2021 Bonds”), for the Confederated Tribes of the Warm Springs Reservation of Oregon (the “Tribe”). KBCM served as sole initial purchaser for the issuance, which totaled $40,955,000 in par. The proceeds of the 2021 Bonds will be used to finance the Tribe’s first purchase option (the “First Purchase Option”), acquire an additional undivided 16.66% interest in the Pelton Project, fund a debt service reserve account, and pay costs of issuance.

KBCM assisted the Tribe through all stages of the financing – including securing the rating for the Bonds, sizing and structuring the offering, and selling the debt at the lowest possible borrowing cost. The Tribe’s A3 (stable) rating is among the highest ratings ever earned by a tribal entity. During the marketing process, KBCM used its accumulated knowledge of accounts that buy tribal bond offerings to hone in on target accounts. KBCM’s marketing effort resulted in a favorable outcome for the Tribe; the all-in true interest cost for the 2021 Bonds was ~3.26%, lower than the Tribe’s prior issue.

The Confederated Tribes of the Warm Springs Reservation of Oregon is a federally recognized, self-governing sovereign Indian tribe consisting of three Indian tribal groups: the Warm Springs, the Wasco and the Paiute. The Tribe has 5,324 members, the vast majority of whom reside on the Tribe’s Reservation.

The Pelton Project, composed of three sequential dams (the Round Butte Dam, the Pelton Dam and the Reregulating Dam) (the “Jointly Owned Facilities”) and certain related generating and transmission facilities, is located on the Deschutes River along the Reservation boundary in central Oregon.