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ChatGPTClaudePerplexity· Related development
District refunds its bonds at a 1.32% interest cost and extends its City lease to 2051
At a special meeting the board unanimously approved resolutions on the sale of refunding bonds and a Second Amendment to its Amended and Restated Lease with the City of Amarillo. The financial advisor said the refunding bonds, underwritten by Stifel and Frost, had a true interest cost of 1.32% against 4.02% on the outstanding bonds, pledged only the hotel occupancy tax (not the vehicle rental tax) because of state law changes, and would close June 15, 2021. Bond counsel said the lease amendment extends the lease to the later of 2051 or the final payment of all outstanding debt and provides that the City pays any shortfall on the 2021 bonds.[1][2][3][4]
Laura StorrsTerry WrightSpecialized Public Finance Inc.Norton Rose Fulbright
What the sources say
- ✓ Verified
Specialized Public Finance first presented a refunding opportunity on January 21, 2020, estimating net present value savings of $295,482 (6.5% of the refunded bonds); on March 29, 2021 it estimated $311,707 (7.584%). On May 10, 2021 the board approved a resolution setting a TEFRA hearing for May 19 and appointing a hearing officer, with a May 20 sale date. [4][3][2]
- Npv savings 2020 estimate
- $295,482
- Npv savings 2021 estimate
- $311,707
- Npv savings 2021 estimate
- 7.584%
- ✓ Verified
Steven Adams, Specialized Public Finance: Financial advisor Steven Adams said Stifel and Frost were the underwriters, that "the hotel occupancy tax is the only pledge on this refunding and not the vehicle rental tax due to changes in state law," and that the refunding bonds "have a true interest cost of 1.32% versus the 4.02% interest of the outstanding bonds." The resolution passed unanimously on Dale Williams' motion. [1]
- True interest cost
- 1.32%
- Prior interest
- 4.02%
- ✓ Verified
Bob Dransfield, bond counsel (Norton Rose Fulbright): Dransfield said the Second Amendment to the Amended and Restated Lease "extends the lease term to be the longer of 2051 or the final payment of all outstanding debt," that "only hotel occupancy tax supports the 2021 refunding bonds and any shortfall would be supported by payment from the City of Amarillo," and that "the City of Amarillo pays $10 per month or any shortfall on debt payments." The board approved it unanimously. [1]
