The city of North Augusta completed its Installment Purchase Revenue Bond transaction for Project Jackson on Tuesday, according to a news release from City Administrator Todd Glover.
During the three-hour investor order period for the $69.45 million bond issue, the city received investor requests for bonds totaling more than $133 million, the release said. The strong demand from investors allowed the bonds to be "aggressively priced at an all-in true interest cost of 4.931 percent."
Because demand exceeded supply, the city was able to negotiate a lower interest rate that it must pay bondholders, saving taxpayers money, Glover said. The city had expected the rate to be above 5 percent.
"We got to buy a better car for the same payment," he said. "There's an art to that (bond sales) and that's why you bring in underwriters."
The money will pay for the stadium, the hotel/conference center and its parking deck, and the infrastructure for those projects. The Medac parking deck and the Municipal Center's mortgages were refinanced as part of the issue.
The bonds were rated "A2" by Moody's Investors Service. Bank of America Merrill Lynch and Wells Fargo Securities served as the underwriters on the transaction. First Tryon was the financial adviser, and PopeFlynn was the bond counsel.
