METRO Sells Bonds-Proceeds Purchase Buses

Press Release New Metro Going Places

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Release Date:     Aug. 11, 2015

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The Metropolitan Transit Authority of Harris County (METRO) is the region’s largest public transit provider, offering safe, reliable and affordable transportation services about 370,000 times per day. METRO operates more than 1,200 buses, and METRO's New Bus Network is coming August, 2015. For a good picture of where we are headed see our new system map. METRO's expanded light-rail system includes the Red Line (Main Street and Northline extension), Green Line (East End) and Purple Line (Southeast). Other METRO services include: Star Vanpool, METROLift, HOV lanes, HOT lanes, Bikes-on-Buses/Trains program, Park & Ride, and road improvement projects. Learn more about METRO by visiting where you can download information about our T.R.I.P. app and our interactive rider tool METRO 360 [take a seat].  


METRO Sells $115 Million of Bond for Vehicle Purchases

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.