FORT MYERS, Fla. (Sept. 19, 2016) – City Manager Saeed Kazemi, P.E. announced that the City of Fort Myers has sold its Capital Improvement Revenue and Refunding Bonds, Series 2016 Bonds in the amount of $52,130,000. The Series 2016 Bonds were issued with the goals of: (1) to currently refund the City’s previously issued Improvement and Refunding Revenue Bonds, Series 2006, to achieve annual debt service savings; and (2) to finance various capital improvement projects within the City. Bond refundings are similar to the refinancing of mortgages. Existing debt is prepaid and new debt, at a lower interest rate, is issued to replace the original debt.
The refunding (refinancing) component of the transaction resulted in an average of $350,000 in annual debt service savings for fiscal years 2018 through 2037. The transaction also enables the City to finance various capital improvement projects in the amount $19,757,300.
Mr. Kazemi explained that with the help of the City’s financial advisors, the pricing of the Series 2016 Bonds garnered strong investor demand with the investors’ orders exceeding the amount of bonds available for purchase. In fact, for the estimated $52 million in bonds available, the City received orders in excess of $400 million. This high level of investor demand enabled the City to reduce interest rates by 0.02 percent to 0.11 percent in nearly every maturity compared to the pre-pricing interest rates. The result lowered the City’s total interest payment by $463,000 due to the strong demand for the City’s bonds.
“Overall, the transaction allowed the City to lower its borrowing costs through both the refunding and maximized investor demand, and proved to be a great success,” said Kazemi.
About the City of Fort Myers, FloridaKnown as the “City of Palms,” Fort Myers is a thriving city rich in history, culture, commerce and nature.
The city hugs the shores of the Caloosahatchee River, which created the town and established its importance during the Seminole Wars. Since the early 1800s, settlers and visitors of fame and wealth came to Fort Myers, most notably inventor Thomas A. Edison, who built his home, laboratory and botanical gardens between the river and McGregor Boulevard.
Professional theaters, art galleries, sports parks, playgrounds and open spaces, businesses large and small, restaurants, and cafes highlight the City and surrounding neighborhoods.
Downtown is a busy business and government hub during the day, with a lively evening scene where clubs, coffee houses, and live performances draw a crowd.
Those who love nature will discover parks, nature preserves, hiking and biking trails, paddle boarding, kayaking and more.