Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Bonds Finance topic
No spam. Unsubscribe anytime.
Denison approves $51.9 million certificates of obligation after favorable bond sale and AA ratings
Summary
Council adopted an ordinance authorizing issuance of $51.9 million in combination tax and limited surplus revenue certificates of obligation (Series 2025A). City financial advisers reported 11 bidders, a low true-interest cost of 3.79% and affirmed ratings from S&P Global (AA-) and Fitch (AA).
The Denison City Council on March 3 approved an ordinance authorizing the issuance of $51,900,000 in combination tax and limited surplus revenue certificates of obligation, Series 2025A, to fund water and sewer projects, streetscape work, fire station design and repairs to Waterloo Pool.
Marty Hsu of Hilltop Securities, the city's municipal advisor, reported competitive sale results: 11 underwriters submitted bids and PNC Capital Markets offered the winning bid with a true-interest cost of 3.79 percent. Hsu characterized the outcome as favorable against the municipal benchmark and noted the city received multiple competitive bids.
The council was also presented with recent independent credit ratings. Standard & Poor's Global Ratings affirmed a AA-minus rating for the city and Fitch Ratings affirmed an AA rating. Hsu said both agencies' reports, included in the council packet, point to the city's fiscal strength and management practices, which contributed to the favorable pricing.
Council adopted the ordinance to accept the sale results and authorize required instruments and procedures to issue the certificates. City staff said the bonds will be submitted to the Texas attorney general for approval and that the city expects to receive funds on March 19.
Councilman Thomas moved approval and Mayor Pro Tem Tim Adams seconded the ordinance; the motion carried unanimously by voice vote.
