DALLAS - El Paso, Texas will seek new money and savings with a combined $155 million issue of refunding bonds and certificates of obligation scheduled the week of April 7.
The deal includes $110.4 million of general obligation refunding bonds and $43.3 million of combination tax and airport revenue certificates of obligation. The COs will finance airport improvements, including a consolidated rental car facility.
Underwriters on the deal are Wells Fargo Securities and Stifel, Nicolaus & Co., with First Southwest Co. as financial advisor. Norton Rose Fulbright serves as bond counsel.
The bonds reach final maturity in 2038 and carry ratings of AA from Standard & Poor's and Fitch Ratings with stable outlooks.
"Overall debt levels are high relative to market value at nearly 7%, but are more moderate on a per capita basis at roughly $3,700," noted Fitch analyst Gabriela Gutierrez. "Given the city's plans to issue additional debt for recently voter-approved quality of life projects, as well as COs for transportation and public infrastructure projects, debt levels are projected to remain elevated for the near-to medium term."
Although El Paso's finances suffered during the 2008 recession, the presence of the Fort Bliss Army post and the city's role as a trade corridor with Mexico helped the city and region recover, analysts said. An emerging healthcare sector linked to the Texas Tech University Medical School is another positive economic factor, they added.
With a population of 658,631, El Paso is the seat of El Paso County and the sixth largest city in Texas. The metro area population, including the city of Juarez, Mexico, across the Rio Grande is estimated at 2.7 million.
In November 2012 voters passed two general obligation bond propositions totaling $473 million for parks and recreation, zoo, open space, libraries, museum, and other civic projects
The El Paso City Council approved the new airport rental car facility as part of a five-year capital improvement plan at a meeting in August 2013. The car-rental facility is expected to open in 2016, officials said.
Other improvements to the airport include $16.8 million for runway reconstruction, $15.9 million for a new taxiway and $14 million for loading bridges.
