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Upcoming Financial Transactions Finance Department Kelly Dowe, Director March 6, 2012.

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Presentation on theme: "Upcoming Financial Transactions Finance Department Kelly Dowe, Director March 6, 2012."— Presentation transcript:

1 Upcoming Financial Transactions Finance Department Kelly Dowe, Director March 6, 2012

2 2 Annual Financing Plan DepartmentSeries Size Anticipated Closing ($ millions) HAS 2012A,B,C520April 2012 GO 2012A,B May 2012 CEF 2012A40-50 May 2012 CUS 2012W TBD GO 2010 CO10June 2012 GO TRANS 2012TBDJuly 2012 CUS * TWDB 2012X50Sept CUS * TWDB 2012Y49Sept CUS 2012Z132Dec Total1, ,611 * The referenced transactions are new issues that will be placed through the Texas Water Development Board.

3 Commercial paper (CP) has provided an expedient, cost–effective method of accessing cash and providing interim financing. The CP notes are later refinanced into fixed rate bonds that match the useful life of the project or equipment being financed. This transaction represents the normal refunding of these commercial paper notes. On June 16, 2010, City Council approved the issuance of the City of Houston Certificate of Obligation (Demolition Program) Series The note had a 24 month maturity and a maturity date of June 30, The Finance Working Group (FWG) is considering either refunding this note into long-term bonds in conjunction with the PIB Series 2012 or extending the maturity date of the note. Additionally we will be refinancing some currently outstanding bonds at lower current market interest rates which result in present value savings currently estimated at $14.1 million. 3 General Obligation Refunding Bonds Series 2012

4 Below is a breakdown of proposed components: Assuming conducive market conditions, the FWG will propose to City Council a refinancing that results in positive present value savings. RCA is expected to be brought before Council in March. 4 General Obligation Refunding Bonds Series 2012 Component being RefundedUp ToUse Refund CP Series G, H, J$130,000,000CIP/Drainage Refund CP Series E$60,000,000EAP Total$190,000,000 Current/Advance Refundings$300,000,000 Certificate of Obligation Series 2010$10,000,000Demolition Program Total$310,000,000 Grand Total$500,000,000

5 The issuance of the proposed Convention and Entertainment Facilities Department Hotel Occupancy Tax (HOT) and Special Revenue Refunding Bonds, Series 2012 are in response to favorable market conditions. The FWG recommends issuing the Series 2012 Bonds to refinance the currently outstanding Series 2001B Bonds at lower current market interest rates and produce an estimated $4.9 million of present value savings, which constitutes an estimated 11.9% saving. RCA is expected to be brought before Council in March. 5 C & E Revenue Refunding Bonds Series 2012


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