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Metro - Bi-State Development Agency

07/13/2020 | News release | Distributed by Public on 07/13/2020 09:01

Bond Refinancing Will Provide $36 Million in Savings for Regional Taxpayers

Bi-State Development is pleased to announce that a recent bond refinancing will provide more than $36 million in budgetary savings over the life of the bonds. More than $171.2 million in Series 2020 bonds were sold on July 7, with approximately $570 million or 3.4 times the number of orders being placed for the bonds. The deal will close on July 1, 2020.

'This refinancing is part of a financial strategy that is committed to fiscal responsibility and ensuring the financial stability of our organization,' said Taulby Roach, President and Chief Executive Officer of Bi-State Development. 'It not only provides substantial savings for taxpayers, but also improves Bi-State Development's cash position during this challenging time. This allows us to continue providing safe transit operations and other essential services to the community, and gives us the ability to better respond to economic uncertainty as our region moves forward.'

The Bi-State Development Board of Commissioners authorized the refinancing strategy during its April meeting, which allowed the organization to take full advantage of the favorable market conditions that contributed to the significant savings. Bi-State Development refunded all but approximately $22 million of its remaining Series 2013A bonds through the sale of the Series 2020 bonds, which generates $24.7 million in present-value savings, and approximately $36.4 million in total debt service savings over the life of the bonds.