Miami, Florida, sold $179.5 million in bonds to finance a variety of capital projects.
The city issued $135.5 million in tax-exempt bonds and $44 million in taxable bonds. The tax-exempt bonds mature between 2034 and 2049, yielding between 3.46% and 4.19%. The taxable bonds mature between 2025 and 2034, paying interest at rates between 5.056% and 5.409%. The securities received a rating of Aa2 from Moody’s Investors Service and AA from S&P Global Ratings.
“The Aa2 Issuer Rating reflects the city’s strong and growing economy that is expected to continue to support significant revenue growth,” Moody’s analysts wrote.
The city will use the bond proceeds to make improvements to its parks, pools, community centers, roads, water system, and other city facilities.
The issuance marks the first bond sale under the so-called Miami Forever issuance that voters approved in 2018. That year, voters authorized the city to sell $400 million in bonds to fund city infrastructure, public safety, and affordable housing.
“The intent of Miami Forever Bond is to build a stronger, more resilient future for Miami, alleviating existing and future risks to residents, economy, tourism and the city’s legacy,” the city’s bond website reads.
The bonds are special limited obligations of the city, payable by limited property taxes.
Siebert Williams Shank & Co, LLC served as lead underwriter on the issuance, purchasing the bonds for $192.5 million. The price reflected a premium of more than $13 million. PFM Financial Advisors LLC acted as municipal advisor.