Refunding bonds

Local, county and state officials said they took initial steps Wednesday in what will become a much larger contingent of elected officials who will jawbone their federal counterparts with testimonials about the cost savings attributable to advance refundings.

Reinstatement of advance refundings could be packaged with infrastructure legislation because many state and local governments have used the savings to finance new infrastructure.

The university plans to price $118 million of new money and refunding bonds this week, and to close the refunding deal in September.

The Volunteer State lowered the savings threshold it requires for a refunding.

Muni issuance will pick up next year, said George Friedlander, managing partner of Court Street Research Group.

Proceeds of Charlotte, N.C.'s deal will refund debt issued in 2008 and prepay a bond-anticipation note.

It's important and constructive to talk about these kinds of alternatives to advance refundings, market participants said.

The new tax law that terminated advance refundings of bonds after Dec. 31, 2017, does not specify that only "tax exempt" refundings are prohibited.

Bond Dealers of America urges the House Ways and Means Committee to take up and pass a bill that would restore advance refunding bonds according to prior law.

The nonprofit hospital chain expects significant savings even though it must issue taxable debt to refund tax-exempt bonds.