The City refinanced most of its outstanding Revenue Bonds which had been issued over the past decade. The existing bonds held interest rates of 3.98% and 3.50% and had been issued through the Sunshine State Government Financing Commission (SSGFC).
Due to favorable market conditions, the City had the opportunity to refinance the existing loans for significant debt service savings. In order to take advantage of this opportunity, the City and Public Financial Management (PFM), in its capacity as the financial advisor to the SSGFC, renegotiated the terms of the existing loans with SunTrust Bank. After significant negotiations over the last month, SunTrust agreed to a combined interest rate of 2.67% to refinance this debt, keeping the final maturities of the existing loans the same. The proposed transaction will result in the City achieving $4.53 million of gross debt service savings which represents $3.53 million of net present value savings or 7.20% of the refunded amount. This equates to approximately $235,000 annually through 2031. The loan closed this past June 5.
Mayor Jim Cason signs documents provided by JoLinda Herring, Bond Counsel to the Sunshine State Government Financing Commission. Sitting in front of him are (L-R) City of Coral Gables Finance Director Diana Gomez and Steve T. Leth, Senior Vice President of SunTrust Bank.