September 16, 2020
BOARD APPROVES BOND REFINANCING TO SAVE AUTHORITY $32 MILLION
The Metropolitan Atlanta Rapid Transit Authority (MARTA) Board of Directors
recently approved a resolution to refund $250.765 million of its Series 2012A
bonds, saving the Authority $32.209 million or almost 13 percent in net present
value of future debt service costs. MARTA’s average debt service savings
is just over $2 million per year.
MARTA moved on this refunding of its outstanding Series 2012A
Bonds to take advantage of positive market conditions and to complete the
transaction during a favorable time with market rates at historic lows.
Over the last five years, MARTA’s improving financial condition
has resulted in strong bond ratings. On August 27, S&P and Moody’s reviewed
and assigned a rating of AA+ and Aa2 to the Federally Taxable Refunding Series
2020B Bonds. Proceeds of the Series 2020B sale will be used to refund MARTA's
outstanding Sales Tax Revenue Bonds (Third Indenture Series), Refunding Series
Attentiveness of MARTA staff and financial advisors at Hilltop
Securities, First Tryon Advisors and TKG and Associates, and a legal team from
Holland and Knight, Kutak-Rock and Townsend and Lockett LLC, contributed to
this highly successful and timely transaction.
Capital Inc. was the lowest of six bids received. Spreads between the winning bid and
cover bid were competitive.