City of Miami says it will save $1 million with $25 million bond issue
By Susan Stabley
The City of Miami plans to save $1 million by refinancing debt through a $25 million bond issue.
A vote on the bond issue is set for today's Miami City Commission meeting at City Hall.
"This is not new money," said city spokesman Carlos McDonald. "This is playing with the same money but on better terms."
The money will be used to re-fund $19.22 million in principal on the city's $31.86 million 1993 issue. The new bonds would mature July 1, 2013 and the 1993 bonds will mature July 1, 2004 through July 1, 2009.
Moody's Investor's Service, Fitch Ratings and Standard & Poor's Ratings Group are expected to assign their top ratings to the new bonds, according to city documents.
"The current rates are favorable to the transaction," Mr. McDonald said. "It produced a savings. Our advisers recommend we do this now, so we went forward."
Underwriters for the bonds are Jackson Securities, Lehman Brothers, Morgan Stanley & Co., J.P. Morgan Securities and UBS Paine Webber.