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County treasurer, finance team report $775,989 projected savings after bond refunding
Summary
County financial advisers reported successful refinancing of outstanding bonds, producing roughly $775,989 in nominal savings and approximately $638,431 in present‑value savings over the life of the transaction.
San Patricio County heard a presentation on a recent bond refunding that county financial advisers said yielded meaningful interest‑cost savings.
Tony Osso, representing the county's municipal finance team, told the court market conditions in March produced lower yields than in January, and strong investor demand led the offering to be roughly two times oversubscribed. Osso said the county refunded about $9,155,000 of prior bonds by issuing $8,410,000 of new bonds; the transaction's overall cost of borrowing was 3.288 percent versus an average coupon of 4.661 percent on the refunded debt.
"When we were all said and done, we only had $8,555,000 in bonds to sell, but we received $15,180,000 in orders," Osso said, describing the oversubscription that helped drive better pricing. He summarized the estimated nominal savings as $775,989 and the present‑value savings as $638,431 over the life of the refunding.
Osso attributed the favorable result to lower market rates at pricing, strong investor interest and the county's AA2 rating from Moody's. He also credited county staff, the auditor's office and the underwriting team for supporting the financing work.
County officials did not take a formal action during the presentation; the bond sale had been executed and the court received the report for the record.
