Upload
aubrey-parker
View
225
Download
3
Tags:
Embed Size (px)
Citation preview
Sale of Refunding Bonds
• $143.9 million in refunding bonds sold competitively on February 12 and 13
• Refinance bonds sold in 2005 and 2006 at lower interest rates
• Debt service savings of $24.6 million ($16.9 million net present value)
• Refunding bonds rated Aa2 by Moody’s; AA+ (Gas AA) by Standard & Poor’s
Refunding Transactions
Refunding Refunded
Refunding Bonds Bonds Debt Service Issuance
System Bonds Avg. Rate Avg. Rate Savings Cost
Wastewater $113.3M 3.19% 4.88% $20.5M $279K
Gas $11.6M 2.65% 4.43% $1.6M $99K
Water $9.3M 2.79% 4.51% $1.3M $85K
Electric $9.7M 2.64% 4.42% $1.2M $97K
Total $143.9M $24.6M $560K
Bids on Wastewater Bonds
True Interest Cost
Citigroup Global Markets 3.1905%
J.P. Morgan Securities 3.2446%
Wells Fargo Bank, NA 3.2500%
Bank of America Merrill Lynch 3.2592%
Barclays Capital 3.2817%
Robert W. Baird & Co. 3.2913%
Morgan Stanley & Co. 3.2967%
Raymond James & Associates 3.3436%
Hutchinson, Shockey, Erley & Co. 3.5642%
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
2014 2018 2022 2026 2030 2034
Principal Interest
$113.3M Wastewater Refunding Bonds
Millions ($)
• Fully mature in 2037• Average life of debt
reduced from 18.9 to 17.7 years
• Callable beginning 2022
Refunded Debt Service $201,024,000
New Debt Service $177,962,000
Savings $20,548,000
Bids on Gas Bonds
True Interest Cost
Bank of America Merrill Lynch 2.6517%
Raymond James & Associates 2.6996%
Hutchinson, Shockey, Erley & Co. 2.7042%
Robert W. Baird & Co. 2.7340%
UBS Financial Services 2.8356%
J.P. Morgan Securities 2.8569%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2014 2018 2022 2026 2030
Principal Interest
$11.6M Gas Refunding Bonds
Millions ($)
• Fully mature in 2031• Average life of debt
reduced from 11.8 to 11.3 years
• Callable beginning 2022
Refunded Debt Service $17,358,000
New Debt Service $15,773,000
Savings $1,585,000
Bids on Water Bonds
True Interest Cost
Bank of America Merrill Lynch 2.7915%
Citigroup Global Markets 2.7960%
Piper Jaffray 2.8056%
Hutchison, Shockey, Erley & Co. 2.8105%
Robert W. Baird & Co. 2.8299%
J.P. Morgan Securities 2.8572%
Raymond James & Associates 2.8586%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2014 2018 2022 2026 2030
Principal Interest
$9.3M Water Refunding Bonds
Millions ($)
• Fully mature in 2030• Average life of debt
reduced from 12.8 to 12.5 years
• Callable beginning 2022
Refunded Debt Service $14,197,000
New Debt Service $12,917,000
Savings $1,280,000
Bids on Electric Bonds
True Interest Cost
Bank of America Merrill Lynch 2.6404%
William Blair & Co. 2.6416%
Raymond James & Associates 2.6648%
UBS Financial Services 2.6667%
Piper Jaffray 2.6732%
Robert W. Baird & Co. 2.7092%
Hutchinson, Shockey, Erley & Co. 2.7252%
J.P. Morgan Securities 2.7293%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2014 2018 2022 2026 2030
Principal Interest
$9.7M Electric Refunding Bonds
Millions ($)
• Fully mature in 2031• Average life of debt
reduced from 11.7 to 11.1 years
• Callable beginning 2022
Refunded Debt Service $14,323,000
New Debt Service $13,115,000
Savings $1,208,000
Issuance Costs
Cost Professional Firm Fee
Financial Advisor Cumberland Securities $175,000
Bond Counsel Bass, Berry & Sims $152,000
Rating Agency Moody's $98,000
Rating Agency Standard & Poor's $66,000
Accounting Souther & Newhouse $12,000
Paying Agent Regions Bank $5,000
$508,000
Other Costs (POS, OS, Advertising, Misc.) $52,000
$560,000