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Upcoming Financial Transactions

Upcoming Financial Transactions. Finance Department Kelly Dowe, Director March 6, 2012. Annual Financing Plan. * The referenced transactions are new issues that will be placed through t he Texas Water Development Board. . General Obligation Refunding Bonds Series 2012.

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Upcoming Financial Transactions

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  1. Upcoming Financial Transactions Finance Department Kelly Dowe, Director March 6, 2012

  2. Annual Financing Plan • * The referenced transactions are new issues that will be placed through the Texas Water Development Board.

  3. General Obligation Refunding Bonds • Series 2012 • Commercial paper (CP) has provided an expedient, cost–effective method of accessing cash and providing interim financing. The CP notes are later refinanced into fixed rate bonds that match the useful life of the project or equipment being financed. This transaction represents the normal refunding of these commercial paper notes. • On June 16, 2010, City Council approved the issuance of the City of Houston Certificate of Obligation (Demolition Program) Series 2010. The note had a 24 month maturity and a maturity date of June 30, 2012. The Finance Working Group (FWG) is considering either refunding this note into long-term bonds in conjunction with the PIB Series 2012 or extending the maturity date of the note. • Additionally we will be refinancing some currently outstanding bonds at lower current market interest rates which result in present value savings currently estimated at $14.1 million.

  4. General Obligation Refunding Bonds • Series 2012 • Below is a breakdown of proposed components: • Assuming conducive market conditions, the FWG will propose to City Council a refinancing that results in positive present value savings. RCA is expected to be brought before Council in March.

  5. C & E Revenue Refunding Bonds • Series 2012 • The issuance of the proposed Convention and Entertainment Facilities Department Hotel Occupancy Tax (HOT) and Special Revenue Refunding Bonds, Series 2012 are in response to favorable market conditions. • The FWG recommends issuing the Series 2012 Bonds to refinance the currently outstanding Series 2001B Bonds at lower current market interest rates and produce an estimated $4.9 million of present value savings, which constitutes an estimated 11.9% saving. • RCA is expected to be brought before Council in March.

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