The Metropolitan Atlanta Rapid Transit Authority (MARTA) Board of Directors voted to approve a refunding of $176.8 million of variable rate bonds replaced with fixed rate bonds and a new issue of $117.5 million of variable rate debt.
MARTA General Manager & CEO Jeffrey Parker announced, “These two transactions reduce the Authority’s variable rate debt by $59.3 million, lowers annual interest expense by $171,000, and provides $1.2 million in net present value savings over the life of the transactions.”
“We are very proud of the market’s acknowledgement of MARTA’s fiscal discipline and creditworthiness,” said MARTA Board of Directors Chairman Robert L. Ashe. “Our record of fiscal responsibility has once again paid dividends in lower costs and present day savings.”
The $165.9 million of fixed rate bonds was sold through a competitive sale with Citigroup, providing the lowest of ten bids with an all-in cost of 2.2%. The spread between the highest and lowest bids was only three basis points.
MARTA received 16 responses from 29 financial institutions for variable rate debt. Wells Fargo provided the successful bid priced at 80% of LIBOR plus 35 basis points.
Dedication by financial advisors at Hilltop Securities, First Tryon Advisors and TKG and Associates, and the legal team of Holland and Knight, Kutak Rock and Townsend and Lockett LLC, along with MARTA staff contributed to these successful transactions.
MARTA Reduces Debt Cost and Variable Rate Debt by Almost $60 Million was originally published on atlantadailyworld.com