Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Finance Refunding topic
No spam. Unsubscribe anytime.
State Bond Commission authorizes planning for potential refunding of $488 million gasoline-and-fuels tax loan
Summary
Commission authorized staff and the municipal adviser to develop a plan of finance to potentially refund an outstanding $488 million gasoline-and-fuels tax revenue term loan (series 2028) with tax-exempt bonds if market conditions improve and produce savings.
The State Bond Commission on June 11 authorized staff and the municipal adviser to develop a plan of finance for a potential refunding of an outstanding gasoline-and-fuels tax revenue term loan agreement, currently with JPMorgan Chase Bank.
Commission staff said the term loan agreement, entered in April 2020, currently has an outstanding principal of about $488,000,000 with a final maturity in February of the stated maturity year referenced in the presentation. The bank has provided a proposal to payoff the loan at a discount through issuance of tax-exempt public market bonds to achieve gross savings. Staff told commissioners that recent interest-rate increases have eliminated savings at current market levels, but a decrease in yields of roughly 30 basis points could produce sufficient savings to proceed. The municipal advisor recommended beginning preparatory work so the commission is positioned to act if market conditions improve.
Representative Reiser moved approval of item 24; Senator Migas seconded. Hearing no objection, the commission approved beginning the process and developing a resolution to move the potential refunding forward should favorable market conditions occur. Staff said the authorization allows staff to begin the planning and draft a resolution for future consideration; no final refunding decision or authorization to issue bonds was made at the June meeting.
