Sandy Springs advances $151M bond refinancing

The Sandy Springs Performing Arts Center anchors the City Springs development, funded by a $159 million bond issue in 2015. The city is now laying the groundwork to refinance the bonds. HYOSUB SHIN / HSHIN@AJC.COM AJC FILE
The Sandy Springs Performing Arts Center anchors the City Springs development, funded by a $159 million bond issue in 2015. The city is now laying the groundwork to refinance the bonds. HYOSUB SHIN / HSHIN@AJC.COM AJC FILE

Sandy Springs has laid the groundwork for refinancing more than $150 million in revenue bonds issued in 2015 for the City Center project.

The City Council on Tuesday approved a resolution authorizing its financial advisor, Davenport & Co., to begin preparing materials for a possible refinancing. This would enable the city to move quickly to a council vote if and when market conditions are favorable, according to a city announcement.

About $151 million of $159.47 million in City Center bonds remains outstanding, with coupon rates ranging from 2.25% to 5%.

“In watching bond market fluctuations, we’ve seen rates at low as 1.2 percent,” said Sandy Springs Mayor Rusty Paul. “Refinancing provides the city with an opportunity to save as much as a half million in annual debt service, which is a substantial savings.”

The Taxable Refunding Revenue Bond Series 2020 would have an aggregate principal amount of up to $198 million, to refund all or part of the outstanding 2015 bonds and pay related expenses. Information: https://bit.ly/2XV4fTh

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