The City of Miami Beach closed on its three bond issues today to provide $636 million in funds for the renovation and expansion of its convention center. The bonds priced during the week of November 16, 2015 at interest rates near historic lows. The City benefited from strength in the tax-exempt market in mid-November, selling the bonds as soon as possible after the approval of the Guaranteed Maximum Price contract and enactment of the additional 1% Resort Tax on transient rentals.
The City’s bond closing today comes the day prior to the December 16 Federal Reserve Open Market Committee meeting, during which the Fed is widely expected to increase interest rates.
“The futures market is pricing in a 76% chance that the Fed will increase interest rates tomorrow. We are pleased to have priced our bonds well in advance of likely the first Fed rate increase since 2006,” said Miami Beach City Manager Jimmy L. Morales.
The City successfully executed this combined financing plan ahead of its projected schedule and saved over $4.4 million over the life of the financings by reducing interest rates on the day of pricing due to investor demand. The bond closings complete the funding for the convention center, and the first phase of construction will now begin.
More about the Miami Beach Convention Center Renovation and Expansion project, visit www.mbccfuture.com
PR Link: http://web.miamibeachfl.gov/WorkArea/DownloadAsset.aspx?id=86032