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Alamogordo officials say New Mexico Finance Authority priced utility loan at 4.38%; funds to be available in two weeks
Summary
City presenters told the Alamogordo City Commission that the New Mexico Finance Authority priced bonds this morning for a 25-year utility loan at 4.38%, producing roughly $28 million in proceeds and a roughly $1.8 million annual payment; no formal commission vote was taken at the meeting.
Alamogordo — City financial advisers told the Alamogordo City Commission on Feb. 11 that the New Mexico Finance Authority (NMFA) priced bonds this morning for a 25-year loan at 4.38% and that the city’s proceeds will be available after closing in about two weeks.
John Archuleta, of Bosque Advisors, the commission’s financial adviser on the transaction, said, “we had to sell this morning at a 4.38% for a 25 year financing.” He said the financing produced roughly $25,530,000 of par financing and an approximately $2,545,000 premium paid by purchasers, which together brought the transaction to about $28,000,000. Archuleta added that the city’s annual debt service payment will be “about a million 800,000 on a yearly basis.”
Why it matters: Commission discussion and staff statements tied the planned borrowing to the city’s water and sewer infrastructure work. Commissioners and staff said the first tranche of projects will be financed through this loan and…
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