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HomeNewsMontgomery County Government sells General Obligation Bonds at Great Savings

Montgomery County Government sells General Obligation Bonds at Great Savings

Montgomery County Government TennesseeMontgomery County, TN – On Tuesday, April 21st, 2020 Cumberland Securities Company, Inc., an independent municipal advisor for Montgomery County Government, reported a successful sale of Montgomery County’s 2020A General Obligation Bonds.

Selling the bonds at this time resulted in locking in historically low true interest costs to fund school projects while saving hundreds of thousands for Montgomery County Government.

Winning Bid Brings Substantial Savings to Montgomery County.
Winning Bid Brings Substantial Savings to Montgomery County.

The sale results in the following benefits:

  • Montgomery County was to obtain the funds at a true interest rate of 2.068% for 20-year debt.
  • The refunding of the 2010 Build America Bonds, with a previous coupon of 5.26%,  produced gross savings of $740,884.12 over the term of the refunding.
  • The final size of the bond issue was $1.83 million smaller than offered to the market because of the premium bid.  
  • The premium bid also provides Montgomery County with a greater opportunity to refund the bonds in the future for additional savings.
  • The final structure on the 2020A Bonds positions the County well for future projects.

“This is a huge win for Montgomery County taxpayers. Our financial advisor, Cumberland Securities, along with our accounts and budgets director and assistant director, Jeff Taylor and Shannon Holt, talked almost daily regarding when we would sell these bonds. Their patience and knowledge reaped a financial win for the taxpayers of Montgomery County. Great things happen when everyone in the boat is rowing in the same direction,” said Montgomery County Mayor Jim Durrett.

Montgomery County Government originally appointed the company as its municipal advisor in February 2015. Cumberland Securities Company, Inc. has been serving municipalities since 1931.

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