I wanted to provide you preliminary information regarding the General Obligation refinancing transaction that City Council approved parameter sale authorization for on October 9th for interest cost savings.
The Bonds are planned to be priced the week of November 17th by a syndicate led by Siebert Brandford Shank as Senior Book Running Manager, Frost National Bank as Co-Senior Manager, and RBC Capital Markets and Southwestern Capital Markets as Co-Managers.
The refunding transaction is estimated to produce total savings of $7,168,632 with annual savings estimated at $550,000 in FY 2015 and an average of $661,000 per year from FY 2016 though FY 2025. Net present value savings on the transaction is estimated to be $6,540,258 or 11.62% of the refunded obligations.
Coastal Securities, Inc. and Estrada Hinojosa & Company, Inc. are serving as Co-Financial Advisors, and Bracewell & Giuliani LLP and LM Tatum, PLLC are serving as Co-Bond Counsel.
Closing and delivery for the Bonds is anticipated on Tuesday, December 16th. This refinancing of our debt reflects our on-going proactive debt management and provided an excellent opportunity for interest cost savings.
Since April 2012, the City has completed 6 refunding transactions for interest cost savings resulting in total gross savings of $47.3 million and net present value savings of $39.3 million.