MARTA SAVES MILLIONS DURING BOND REFUNDING
The Metropolitan Atlanta Rapid Transit Authority (MARTA) Board of Directors approved a resolution to refund $56.8 million of its series 2012A bonds, saving the Authority $6.5 million in net present value of future interest costs. MARTA’s average interest savings is $588,000 per year.
MARTA moved quickly on this partial refunding to take advantage of favorable market conditions and to complete the transaction prior to potential adverse changes in federal tax law. The current version of the bill eliminates advance bond refunding after the last day of 2017.
“This decision means a significant savings for the Agency,” said MARTA Chief Financial Officer Gordon Hutchinson. “Our board members were wise to act swiftly.”
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 helped MARTA complete this successful and timely transaction.
“Once again, MARTA’s focus on responsible financial management and fiscal discipline pays off for our system and its stakeholders,” said MARTA Board of Directors Chairman Robert L. Ashe.
MARTA received several competitive bids for the refunding, with the winning bid submitted by J.P. Morgan.