The Atlanta City Council Monday voted to pay a swap termination fee to UBS AG that could cost as much as $25 million. The swap was used to hedge $217 million of the city’s variable-rate water and sewer bonds.

When the city sold $145 million of Series 1999A-1 bonds maturing in 2029 and 2038 and $71.85 million of Series 1992A-2 bonds maturing in 2022 and 2038 the debt received ratings of A from Fitch Ratings and Standard & Poor’s, and A2 by Moody’s Investors Service. The bonds are currently rated BBB-plus by Fitch, Baa1 by Moody’s, and A by Standard & Poor’s.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.