FirstSouthwest Refinances Bonds to Save Sam Rayburn Municipal Power Agency $31.1 Million Over Nine Years
Serving as senior bond underwriter, FirstSouthwest recently refinanced Sam Rayburn Municipal Power Agency’s 2002 bonds, helping to reduce their debt service payments by $31.1 million dollars over the next nine years. Sam Rayburn Municipal Power Agency plans, finances, develops and provides electric power and energy for the future and present needs of Liberty, Jasper and Livingston located in eastern Texas. The recent bond refinancing follows a three-year relationship between Sam Rayburn Municipal Power Agency and FirstSouthwest.
The $109 million bond issue reduced the Agency's long-term debt by $27 million and reduced debt service payments by approximately $3.2 million per year. FirstSouthwest was able to price the new bonds at an average interest rate yield of 2.24 percent. The last of the new bonds will be paid off in October 2021.
"Over the past five years, FirstSouthwest has ranked nationally as the No. 1 financial advisor for the number of bond and note issues, providing a knowledge base to best serve customers' needs when serving as underwriter," said Randy Finken, senior vice president of FirstSouthwest.
"As senior underwriter for this transaction, we were able to benefit Sam Rayburn Municipal Power Agency by capitalizing on current low interest rates in the bond market," Finken added. “With our daily knowledge of the markets, we can make certain our clients accomplish the best results when borrowing in the debt capital markets."