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McLennan County sells $31.9 million certificates of obligation; top bid at 4.29%
Summary
The court accepted a bid this morning for McLennan County's combination tax and limited pledge revenue certificates of obligation (not to exceed $30 million principal), awarding the sale to BOK Financial at a 4.29% true interest cost and scheduling wire of proceeds August 6.
McLennan County on July 15 accepted a competitive bid and awarded the sale of combination tax and limited-pledge revenue certificates of obligation to BOK Financial, the county's financial advisor said, after a competitive morning of bids.
Nut graf: The county had earlier authorized notice of intention for up to $30 million of certificates of obligation. The offering drew seven competitive bids nationwide; the winning bid produced a true interest cost of 4.29 percent. County advisors said the offering generated unusually strong demand and a narrow spread among bidders.
Details: The county's financial adviser reported a double-A1 bond rating from the underwriter's rating review. Seven bidders submitted offers; the winning bidder was BOK Financial with a 4.29% interest rate. The adviser noted the spread among the top bids was very small (thousandths of a percentage point) and that the purchaser's fee (the amount the underwriter expects to earn) was unusually low, about $0.114 per $1,000 of par versus typical $6 to $7 per $1,000 in other sales. County staff confirmed closing logistics: proceeds are expected to be wired to the county on Aug. 6 and county officials will sign documents related to the award.
Ending: Staff said the proceeds will fund the county's previously planned permanent-improvement and capital projects (bond-funded initiatives) and that further administrative signatures are required to finalize the transaction.
Speakers cited in this article: Mark (financial advisor) ; Francis (county finance); Judge (presiding officer); Dustin (county staff).
