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Coppell council approves parameters to pursue refunding of CRDC bonds up to $21.5 million
Summary
Council approved a resolution adopting parameters that would allow the Coppell Recreation Development Corporation to refund Series 2014 sales-tax revenue bonds with a maximum principal of $21.5 million, a true interest cost cap of 3.5% and required net present-value savings of at least 3%; staff will act only if market parameters are met within 180 days.
The Coppell City Council on July 20 approved a resolution supporting the Coppell Recreation Development Corporation’s authority to pursue a refunding of its Series 2014 sales-tax revenue bonds under set market parameters. Staff said the parameter approach allows bond pricing to happen quickly if market conditions reach the thresholds the council approved.
Finance adviser Jason Hughes of Hilltop Securities told council the market was currently about 0.3–0.4 percentage points above the level needed for a refunding, so the bonds were "not in the money" at present. Council approved parameters that include a maximum principal amount of $21,500,000, final maturity no later than Aug. 1, 2038, a true interest cost not to exceed 3.5% and net-present-value savings of at least 3%. City staff will return if the parameters are met and will not issue bonds if the market conditions are unfavorable.
