Dallas Mayor Tom Leppert told the City Council last week at their annual retreat that he anticipates bringing the bonds for a new city-owned hotel to market this month.
The sale will include $459.2 million of taxable Build America Bonds, $38 million of tax-exempt revenue bonds, and $8 million of taxable revenue bonds. In late June, the council authorized $514.1 million of tax-exempt revenue bonds as soon as market conditions enabled the city to obtain an interest rate of 5.5% or less.
The bonds will be issued by the Dallas Convention Center Hotel Development Corp. and are rated A2 by Moody’s Investors Service. The city carries underlying ratings of AA-plus from Standard & Poor’s and Aa1 from Moody’s on its general obligation debt.
The 1,000-room hotel will be built adjacent to the downtown convention center. Underwriters will begin marketing the bonds this week and mostly likely price the debt on August 17, according to officials.
Citi will lead the underwriting syndicate. Goldman, Sachs & Co. and Siebert Brandford Shank & Co. are co-seniors with Jackson Securities LLC, RBC Capital Markets, and Southwest Securities Inc. as co-managers. Estrada Hinojosa & Co. Inc. and First Southwest Co. are co-financial advisers.