The Union Recorder

Local News

June 20, 2013

County refinancing water debt

Raymond James selected as underwriter

MILLEDGEVILLE — After reviewing proposals to refinance the current Baldwin County water fund debt Tuesday, the county commissioners chose Raymond James (RJ) as the underwriter.

The board voted 3-2 to accept the firm with Tommy French, District 2, and Emily Davis, District 1, against the motion.

Milledgeville native and RJ First Vice President Tom Owens made a better presentation, according to District 4 Commissioner Henry Craig.

“They have been around longer, have more facilities and they are a larger organization that would be able to give us more flexibility as we move forward,” Craig said.

Considering Raymond James and Merchant Capital provided similar proposals, Commissioner Sammy Hall, District 3, said it came down to who which company county officials felt most comfortable with.

“It’s not a nickels worth of difference between the two,” Hall said Tuesday. “We are going to decide how we structure it in the best interest of Baldwin County.” 

The county wants to refinance the current water debt to receive a savings.

Owens presented three options with these directives in mind:

• Refinance all outstanding water-related debt;

• Produce the greatest amount of savings;

• Pledge only water revenues to the refunding bonds;

• Shortening the debt is allowed to achieve these goals;

The county can choose the private placement offering or the rated public sale route.

• 15-year, Non-rated, Private Placement

RJ sees this option providing the max savings.

All five series of existing debt would be refinanced with a single refunding issue. By shortening the term of existing USDA bonds, the county would save interest costs since the private placement eliminates the last 10 years of debt service.

Annual payments would be less than the current highest payment on all existing debt. Bonds would be sold to one or a collection of banks through non-rated transactions. 

Though a projected 2.90 percent interest rate isn’t quite as good as a public offering, the private placement structure could front load the gross savings or spread out the principal.

Text Only
Local News
Poll
AP Video
Traditional African Dishes Teach Healthy Eating The Carbon Trap: US Exports Global Warming 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Facebook
Twitter Updates
Follow us on twitter
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Stocks
NDN Video
Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth Bradley Cooper Explains His Voice in 'Guardians of the Galaxy' Deja vu: Another NYPD officer choke-holding a suspect 'Fifty Shades of Grey': Watch the Super Sexy First Trailer Now! Reports: Ravens RB Ray Rice Suspended For 1st 2 Games Of The Season Air Algerie plane with 119 on board missing over Mali Diamond Stone, Malik Newman, Josh Jackson and others showcase talent Free Arturo - The World's Saddest Polar Bear A Look Back at Batman On Film Through The Years LeBron James -- Dropped $2k On Cupcake Apology ... Proceeds To Benefit Charity Snoop Dogg Says He Smoked Weed at the White House Raw: Fight Breaks Out in Ukraine Parliament Chris Pratt Interrupts Interview To French Braid Intern's Hair Shirtless Super Mario Balotelli Dances While Ironing - @TheBuzzeronFOX Whoa! Watch "Housewives" Star Do the Unthinkable LeBron apologizes to neighbors with cupcakes Justin Bieber In Calvin Klein Underwear Shoot