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
www.thewoodlandstownship-tx.gov.
No comments:
Post a Comment