FOR IMMEDIATE RELEASE
July 12, 2018
MARTA REDUCES DEBT COST AND VARIABLE RATE EXPOSURE
Authority Reduces Variable Rate Debt by Almost $60 Million
– The Metropolitan Atlanta Rapid Transit Authority (MARTA) Board of Directors
voted to approve a refunding of $176.8 million of variable rate bonds replaced
with fixed rate bonds and a new issue of $117.5 million of variable rate debt.
General Manager & CEO Jeffrey Parker announced, “These two transactions
reduce the Authority’s variable rate debt by $59.3 million, lowers annual
interest expense by $171,000, and provides $1.2 million in net present value
savings over the life of the transactions.”
are very proud of the market’s acknowledgement of MARTA’s fiscal discipline and
creditworthiness,” said MARTA Board of Directors Chairman Robert L. Ashe. “Our
record of fiscal responsibility has once again paid dividends in lower costs
and present day savings.”
The $165.9 million of fixed rate bonds was sold through a
competitive sale with Citigroup, providing the lowest of ten bids with an
all-in cost of 2.2%. The spread between the highest and lowest bids was only
three basis points.
MARTA received 16 responses from 29 financial institutions for
variable rate debt. Wells Fargo provided the successful bid priced at 80% of
LIBOR plus 35 basis points.
Dedication by financial advisors at Hilltop Securities, First
Tryon Advisors and TKG and Associates, and the legal team of Holland and
Knight, Kutak Rock and Townsend and Lockett LLC, along with MARTA staff
contributed to these successful transactions.