Bond Commission approves underwriter-role swap on March 11 general-obligation refunding and reviews upcoming sales
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Summary
Commission reviewed a March 11 pricing that produced savings and approved swapping book-runner and co–senior manager roles between Loop and Raymond James for a potential follow-up refunding; staff also announced upcoming pricing and a new-money sale.
State Bond Commission staff told members on March 20 that it priced $116,875,000 of general-obligation refunding bonds on March 11 to current-refund the 2015 A and B bonds, producing gross savings of about $8,700,000 and net-present-value savings near $7,600,000. That transaction is scheduled to close on March 25.
Staff asked the commission to approve an amendment to the previously authorized underwriting team: the commission had earlier approved Raymond James and Loop as co–senior managers with Raymond James as book runner; staff requested switching roles so that Loop would serve as book runner and Raymond James as co–senior manager for a potential additional refunding of remaining bonds. Representative Reiser moved the underwriting-role amendment; Senator Lambert seconded. No objections were recorded and the amendment passed.
Staff also told the commission it expected to price gas-and-fuels tax bonds on the morning of March 25 and that a new-money general-obligation bond sale was scheduled for April 9; the commission will hold a public meeting for the April 9 competitive sale.
Nut graf: The March 11 refunding produced measurable savings and the commission approved a logistical change in underwriting roles for a time- and rate-sensitive follow-up refunding if staff proceeds.
Details
• Priced March 11: $116,875,000 refunding bonds to refund 2015 A and B series; gross savings reported at about $8.7 million and NPV savings around $7.6 million; closing March 25.
• Underwriter-role amendment: swap book-runner duties from Raymond James to Loop, making Raymond James a co–senior manager; amendment approved with no objections recorded.
• Upcoming actions: staff plans pricing for gas-and-fuels tax bonds on March 25 and a public competitive sale for new-money general-obligation bonds on April 9.
Provenance: Transcript blocks describing the March 11 pricing, the requested underwriting-role swap and staff updates on upcoming sales are recorded in the meeting transcript.