BRADENTON, Fla. – Atlanta closed on a water and wastewater refinancing that will save the city nearly $43 million over the life of the bonds, said Siebert Cisneros Shank & Co., the book-runner for the deal.
The $226.2 million refunding was finalized Thursday. It will result in net present value savings of $27.5 million or 11.43% over the 25 years of refunded par amount.
Co-managers Barclays Capital, Ramirez & Co., Academy Securities, and SunTrust Robinson Humphrey also underwrote the deal, which was sold using the group net order approach, according to Atlanta’s Chief Financial Officer Jim Beard.
“This is one of the largest water and wastewater treatment systems in the country and we were able to price and execute a transaction that significantly saves taxpayers and the ratepayers of metro Atlanta,” Siebert Senior Managing Director and Chief Operating Officer Sean Werdlow said in a statement.
Bond proceeds are advance refunding 2009B bonds that were issued to finance water and wastewater capital projects in the city’s Department of Watershed Management.
The deal sold at a true interest cost of 3.489%, and will save $1.86 million in annual debt service.
The bonds are rated A-plus by Fitch Ratings, Aa2 by Moody's Investors Service, and AA-minus by S&P Global Ratings.
FirstSouthwest was the financial advisor for the deal.
Hunton & Williams was bond counsel. Greenberg Traurig LLP and Riddle and Schwartz LLC were co-bond counsel. The Haley Law Firm LLC was counsel to the underwriters.