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Atlanta City Council approves the issuance of certain Series 2017A Water and Wastewater Revenue Refunding Bonds

Post Date:04/26/2017 3:02 PM

News Release

FOR IMMEDIATE RELEASE
Council Communications
Atlanta City Hall
55 Trinity Ave. SW
Atlanta, GA  30303

CONTACT:
Dexter M. Chambers
Council Communications Director
dchambers@atlantaga.gov - Email
(404) 330-6309-Direct / (404) 392-0159-Cell

April 26, 2017

 

Atlanta City Council approves the issuance of certain Series 2017A Water and Wastewater Revenue Refunding Bonds

 

ATLANTA –The Atlanta City Council approved the issuance of certain Series 2017A Water and Wastewater Revenue Refunding Bonds during a special called council meeting on Wednesday, April 26 resulting in a savings of nearly $49 million over the life of the bonds. 

On Tuesday April 25th the Department of Watershed priced and took orders to sell $226.2 million in bonds to refund outstanding debt without extending the maturity.  The bond offering was very well received by investors due to the city’s superior credit rating.  Investors placed orders totaling $634.7 million, or 2.8 times the available offering. 

The refunded bonds accomplished the following:

·         Average Annual Debt service savings of $1,863,497

·         Total Debt Service savings of $42,860,438

·         True Interest Cost of 3.489%

Proceeds will go toward the refinancing the outstanding debt

The proceeds will be used to (1) Refund a portion of the city’s outstanding Water and Wastewater Bonds Series B, and (2) Pay certain costs of issuance with respect to the Series 2017A Bonds financing.

“I commend the City of Atlanta’s Department of Finance’s continuing efforts to be responsible fiscal stewards of the City of Atlanta’s resources,” said District 6 City Councilmember Alex Wan, Chairman of the City Utilities Committee. “This bond refunding will not only save the city’s water customers money, but it will also ensure that the Department of Watershed has the necessary resource for their critical projects, while maintaining the City’s strong financial position going forward.”

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