North Texas Tollway’s $1.126 billion refunding includes tender offer
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The North Texas Tollway Authority is seeking savings through bond refundings and tenders in a $1.126 billion deal that tops this week’s municipal bond sale calendar.
The NTTA scheduled a Thursday pricing for the tax-exempt debt offered in two series – $446.14 million of first tier revenue bonds to fund a tender offer for taxable bonds sold in 2020 and 2021 and refund 2015 Series B bonds for debt service savings. Nearly $680 million of second tier bonds will refinance 2015 Series A bonds.
Horatio Porter, NTTA’s chief financial officer, said the tender offer marks the second for the agency after last year’s that resulted in a participation rate of about 25%. In the coming tender, bondholders can shed debt the agency sold when interest rates were extremely low and invest the money in higher-yielding securities, he added.
“Because we can buy them at a discount, it does provide us an opportunity to capture some savings,” Porter said.
Prices for the tender offer,
Barclays, which led NTTA’s 2023 bond sale, was
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Other co-managers in the upcoming sale are Blaylock Van, Jefferies, Loop Capital Markets, Ramirez & Co., Raymond James, Siebert Williams Shank & Co., and Stern Brothers.
The deal’s financial advisors are Hilltop Securities, Estrada Hinojosa, and RSI Group. Co-bond counsel and co-disclosure counsel are McCall, Parkhurst & Horton, and Locke Lord.
