Rosenberg, Texas, Saves $1 Million with Refunding Bonds

HilltopSecurities recently served as financial advisor for the Rosenberg City Council on the issuance of $7,785,000 in refunding bonds. The new refunding bonds are expected to save the city of Rosenberg, Texas, approximately $1,027,686 with a present value of $938,318 or 12.5 percent.

The transaction was designed to refund the city’s General Obligation Bonds Series 2010 and Certificates of Obligation Series 2010A and 2010B, which financed governmental projects including improvements for roads and traffic lights, sewage and water lines, city infrastructure, and public parks. The refunding allowed Rosenberg to take advantage of current, low interest rates.

“As a trusted leader in public finance, our direct and ongoing participation in the capital markets helped us identify refunding opportunities for the city of Rosenberg,” said HilltopSecurities Managing Director and Investment Banker Joe Morrow. “The unique refunding structure will preserve valuable savings that will benefit the city for years to come.”

The winning bid of the nine bids Rosenberg received from various underwriting firms exceeded preliminary calculations of savings by five percent, primarily due to the city’s high credit rating. Rosenberg has never defaulted in payment of its general obligation tax debt and maintains an AA- bond rating.

“Through a strong partnership between city staff and HilltopSecurities, Inc., we were able to monitor the market and generate additional savings to our citizens by refunding the general obligation bonds and certificates of obligation,” said Rosenberg Assistant City Manager and Director of Finance Joyce Vasut. “This strategy allowed us to save the citizens over a million dollars which can be used to fund future capital improvement projects.”

About Hilltop Securities Inc.

Hilltop Securities Inc., a member of NYSE, FINRA and SIPC, delivers the forthright advice and tailored solutions necessary for municipal issuers, institutions, broker-dealers and individuals to thrive. The financial services firm and registered investment adviser is headquartered in Dallas, Texas, with offices across the United States. HilltopSecurities’ Public Finance department ranked as the No. 1 financial advisor in the nation for 2015 and for the five-year period ending December 31, 2015, based on total number of issues. The firm also ranked as the No. 2 financial advisor in the nation for 2015 based on total par volume.* The firm’s other areas of focus include municipal and taxable fixed income underwriting, sales and trading; equity and portfolio trading; retail brokerage services; securities clearing; structured finance; corporate finance; and securities lending. A wholly owned subsidiary of Hilltop Holdings Inc. (NYSE: HTH), HilltopSecurities’ affiliates include Hilltop Securities Independent Network Inc., PlainsCapital Bank, PrimeLending and National Lloyds Corporation.


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