Refunding Bonds Save Longview, Texas, Taxpayers Over $1 Million
Despite the economic consequences of COVID-19, the city of Longview, Texas, will save local taxpayers nearly $1.3 million with their recently issued refunding bonds. HilltopSecurities served as financial advisor on the deal to help the city refinance existing debt and reduced the 2.7 percent interest rate on older bonds to 1.23 percent.
“Given the unusual economic circumstances, it’s exciting that we were able to structure the refinancing in a way that saves the taxpayers significant money,” said John Martin, HilltopSecurities regional managing director. “Through HilltopSecurities’ direct participation in the capital markets, we were able to identify the refunding opportunity for Longview to reduce their debt burden and generate long-term financial benefits.”
While the city of Longview anticipated budget constraints amid the COVID-19 crisis, rating agencies Standard & Poor’s and Fitch Ratings affirmed the city’s reputable AA ratings along with a stable outlook.
“We take our responsibility seriously to preserve the current and future financial health of our city,” said Angela Coen, finance director for the city of Longview. “With the help of HilltopSecurities, we were able to make the strategic decision to issue the refunding bonds and capitalize on taxpayer savings.
Hilltop Securities, Inc. (HTS) is a registered broker-dealer, registered investment adviser and municipal advisor firm that does not provide tax or legal advice. This information is intended for educational and informational purposes only and does not constitute legal or investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product or service. HTS is a wholly owned subsidiary of Hilltop Holdings, Inc. (NYSE: HTH) located at 1201 Elm Street, Suite 3500, Dallas, Texas 75270, (214) 859-1800. Member: NYSE/FINRA/SIPC.