The City of Jacksonville drew an incredible amount of attention from investors yesterday with a debt refinancing that will save citizens more than $31 million over the next ten years. The transaction, led by Bank of America Securities, saw over $1.1 billion of orders from 20 investors versus only $121 million of bonds available for sale.
“Yesterday’s overwhelming success in the market is proof that investors across the nation have confidence in Jacksonville’s surging economy and well-managed finances,” said Mayor Lenny Curry. “My administration’s focus on continuing to pay down debt, increasing reserves, and making fiscally-responsible decisions continues to bring results.”
The transaction locked in interest costs below 2.07% and brings the total amount of debt paid down since Curry’s term began in 2015 to over $585 million. The transaction also took advantage of historically low rates at a time when the costs of borrowing are seeing upward pressure, with market expectations for higher rates in the future. Locking in lower rates and generating savings will allow for continued investment in the needs of our citizens for years to come.
The $121 million issuance of Special Revenue Refunding Bonds Series 2022A refunded the City’s outstanding Capital Improvement Revenue Bonds Series 2012 and Special Revenue Bonds Series 2012A.