METRO
sold $115,060,000 of bonds today (Aug. 11, 2015) with Cabrera Capital Markets and
Citigroup as co-senior managers. All-in total cost was 2.09%.
The
bond proceeds will be used to purchase 150 new buses and to refund $60 million
in commercial paper. By refunding the commercial paper, METRO will be
protecting itself from rising interest rates and will save approximately $340,000 in
annual fees by consolidating commercial paper programs.
The
order period generated approximately $375 million in orders from more than 20
institutional investors. The buyers were mutual funds, trust accounts,
insurance companies and private investors.
This
high level of demand by investors reflects confidence in METRO’s strong Aa2/AA+
credit rating resulting in a favorable borrowing cost when compared to other
relevant issues in the market.
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