ATLANTA – The Metropolitan Atlanta Rapid Transit Authority (MARTA) Board of Directors has approved a resolution to execute financial transactions that will generate substantial savings and increase the Authority’s liquidity by hundreds of millions of dollars.
MARTA will refund $148 million of its series 2020B and 2021D bonds, resulting in $8.2 million in net present value savings on future interest costs. In addition, the Board of Directors authorized the issuance of a new money bond with a par value of $328 million, resulting in the Authority receiving $350 million in funds due to market conditions.
MARTA officials said they leveraged the agency’s strong financial positioning and high AAA credit ratings to achieve favorable borrowing conditions.
“This transaction allows MARTA to achieve significant savings on borrowing costs while securing the necessary funding to support our operational and capital needs,” MARTA General Manager and CEO Collie Greenwood said in a release.
MARTA successfully executed this transaction with support from PFM Financial Advisors and a legal team from Holland & Knight LLP, Kutak Rock LLP, and Townsend & Lockett LLC. Following a review of several proposals from multiple financial institutions, MARTA selected Wells Fargo to lead this transaction.
