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Council approves $1.5 million tax note issue; Hilltop Securities reports 3.52% interest, Oct. 8 closing expected
Summary
The council authorized issuance and sale of City of Texarkana Tax Notes Series 2025 for a par amount of $1,500,000; Jason Hughes of Hilltop Securities said the transaction will net about $1,463,000 in project proceeds, carry a 3.52% interest rate and is scheduled to close Oct. 8 pending Attorney General review.
The City of Texarkana on Wednesday approved an ordinance authorizing the issuance and sale of City of Texarkana Tax Notes Series 2025 with a par amount of $1,500,000. Jason Hughes of Hilltop Securities briefed councilors and said the city marketed the notes via a private placement and received four bids; the winning terms carry a 3.52% interest rate and will “net just over $1,463,000 to the city in project proceeds,” Hughes said.
Hughes told the council the issue’s professional fees and cost of issuance are included in the financing, and no general fund dollars are required to pay issuance costs. He said the package is scheduled to be submitted to the Texas Attorney General’s office for review — a process he estimated will take about one month — and that the scheduled closing date is Oct. 8, when the city would have the proceeds in its account.
Council action: Council approved the ordinance authorizing the issuance by voice vote; the caption was read and the ordinance passed unanimously. The ordinance authorizes levy of a continuing direct annual ad valorem tax for payment of the notes, approval of a paying agent/registrar agreement and related documents.
Next steps: Staff will submit the transaction documents to the Texas Attorney General for review and proceed to closing if the AG’s office approves the offering. The council did not specify the exact project(s) the notes will fund during the briefing.
