Thursday, March 25, 2010

2010 Woodlands Bond Issue Announced

The Woodlands, TX (March 24, 2010)… The Board of Directors of The Woodlands Township issued $34.8 million of tax-exempt unlimited tax bonds today with an average interest cost of 3.82 percent.

The Woodlands Township Chairman of the Board Nelda Luce Blair said, “Our financial plan assumed a five percent interest rate, so this issue is going to yield significant savings to the taxpayers.”

The Woodlands Township’s Financial Advisor Drew Masterson said, “This rate is one of the lowest I’ve ever seen.”

The sale of today’s bonds comes after the voters in The Woodlands approved three different bond propositions on November 3, 2009, to fund fire services, park improvements and refinancing of association line of credit. The sale of the bonds included a very favorable bond rating of AA by Standard & Poor’s. The S&P noted The Woodlands Township’s strong economy, good financial management and limited future debt as strong positives for the rating, according to Chairman Blair.

“We’re very pleased to issue these bonds,” Chairman Blair said. “We are very pleased with our bond rating and very pleased with the interest rate. The voters in November asked for us to move in this direction, and today’s sale is reflective of their wishes, which ultimately benefits the taxpayers of The Woodlands. The passage of all three bond propositions shows that residents said that parks, pathways, fire stations and lower debt are important to their quality of life, and that they understood that these bonds will make those things possible.”  

The winning syndicate underwriters in a sealed bid process included Southwest Securities, Citi, EdwardJones, Wells Fargo, and Stephens. These firms prevailed over three other bidders. Bonds were offered by the underwriters to initial investors at rates ranging from 0.73 percent in 2011 to 4.33 percent in 2030. Bonds can only be offered by the underwriters through the Official Statement, which will be posted on The Woodlands Township Web site.

The first proposition approved by the voters addressed fire department needs. Proceeds from the sale of the bonds will be used to construct two fire stations, purchase related fire equipment for these stations, provide payment of any emergency services district (ESD) debt allocable to the Township upon removal of certain territory from the overlapping taxing jurisdiction of the ESD, and any related issuance costs.

The second proposition approved by the voters addressed The Woodlands Township’s Parks needs. Proceeds from the sale of the bonds on the second proposition will be used for the construction of new parks and pathways pursuant to the Recreation Facilities Development Agreement and Construction Management Agreement assumed by the Township from The Woodlands Association, Inc. and The Woodlands Commercial Owners Association, Inc.

The third proposition approved by the voters addressed the refinancing of existing debt obligations from the community associations. In accordance with the terms of the Transition Agreement, the Township assumed certain debt obligations from each community association and related service companies on January 1, 2010. Proceeds from the sale of the bonds will be used to refinance existing debt obligations of $19.080 million assumed by the Township from the community associations and The Woodlands Fire Department, Inc., and to pay for bond issuance costs.

Click here for additional details. 

The Woodlands Township Web site is at

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