Bond Issuances Yield Excellent Results
SAN ANTONIO, July 17, 2013 /PRNewswire-USNewswire/ -- The City of San Antonio's 'AAA' general obligation bond rating has been affirmed by the three major bond rating agencies, Standard & Poor's, Fitch, and Moody's. The 'AAA' bond rating is the highest credit rating that an entity can receive. San Antonio is the only city with a population of more than one million to receive a 'AAA' general obligation rating from all three major rating agencies.
"The City's AAA bond rating is more proof that San Antonio is well managed and one of the best places in America to do business," Mayor Julian Castro said.
Some of the rationale for the City's 'AAA' bond rating cited in the bond rating reports included a strong and vibrant economy; financial performance and position; strong financial management policies; two-year budget strategy; comprehensive long-term financial; and capital program.
"Among the ten largest cities in the U.S., San Antonio is the only one with 'AAA' ratings from all three major rating services," said City Manager Sheryl Sculley. "This bond rating means lower costs of borrowing, decreased interest costs, and more funding for street, drainage and park repairs. This 'AAA' rating is the result of strong financial policies management of the City of San Antonio."
On July 16, 2013, the City priced two bond transactions to fund projects adopted in the City's Capital Budget. General obligation bonds in the principal amount of $114,435,000 and certificates of obligation in the principal amount of $15,145,000 were priced by a syndicate led by Wells Fargo Securities as Senior Book Running Manager, RBC Capital Markets as Co-Senior Manager, and Piper Jaffray & Co., Rice Financial Products Company, Ramirez & Co., Inc., and Southwestern Capital Markets, Inc. as Co-Managers.
The City achieved excellent results in the pricing of the two transactions. The combined true interest cost on the general obligation bonds and the certificates of obligation was 3.747 percent.
A Model City for all America: San Antonio
San Antonio is a model city for the new face of America—a diverse, progressive and globally competitive city with a solid vision for national and international economic development. In 2012, San Antonio was named an All-America City by the National Civic League. The City of San Antonio maintains a strong financial position with a "AAA" general obligation bond rating from all three major rating agencies. The Milken Institute has ranked San Antonio No. 1 on its Best-Performing Cities list. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st century industries such as bioscience and healthcare. Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military. The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands. The city is also a cybersecurity hub; nationally recognized as a leader in the field of information security. San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. The travel industry also remains a consistent growing economy for the city, as millions of people visit San Antonio on a yearly basis. For more information, visit www.sanantonio.gov.
SOURCE City of San Antonio