Because the escrow account can only earn the low
refunding bond rate, but must pay the high refunded bond rate, the escrow account requires more funds, resulting in a higher issue size, further resulting in a lower savings level.
The certificate proceeds will be used to fund various capital projects and expenditures, while the
refunding bond proceeds will refund a portion of the city's outstanding debt.
Release date- 22082019 - Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA+ with a Stable Outlook to the Metropolitan Transit Authority of Harris County, Texas (the 'Authority') Sales and Use Tax
Refunding Bonds Series 2019A and Taxable Series 2019B.
--$36.5 million Michigan Finance Authority hospital revenue and
refunding bonds, series 2013A;
The city issued Series 2015 General Obligation
Refunding Bonds at lower interest rates to retire the outstanding Series 2007 General Obligation Bonds with higher rates--3.14 percent versus 4.8 percent.
The first is for the issuance of
refunding bonds, not to exceed $7.5 million, which will cover debts already on the books for the sales tax, currently set to expire in 2022.
The sale consists of USD$371.1 million of
refunding bonds subject to the alternative minimum tax (AMT) and USD$133.6 million non-AMT
refunding bonds structured with serial maturities from 2014 through 2034, the POS said.
Meanwhile, Bank of America Merrill Lynch (NYSE: BAC) has won USD441m in
refunding bonds, for which the State will use the proceeds to refund certain previously issued general obligation bonds.
S&P also gave its A+ long-term rating to the city's USD788.595m (EUR564.811m) series 2010A GO
refunding bonds, series 2010B GO taxable project bonds, and series 2010C GO taxable project and
refunding bonds.
However, this tax increase will not cover any taxable property located in the "dissolved school district." Other conditions provide that the net interest rate, maturity date, and "tax levy" of the
refunding bonds cannot exceed that of the refunded bonds.