The Jacksonville Transportation Authority’s (JTA) Chairman Scott L. McCaleb announced Jan. 15 the sale of Series 2015 Revenue Bonds. The revenue bonds, underwritten by J.P. Morgan, are comprised of serial bonds due from 2017 to 2036, with a true interest cost of 3.04 percent.
“Today is an exceptional day for the Jacksonville Transportation Authority and the city of Jacksonville,” said Chairman McCaleb. “The proceeds from the bond issuance will provide immediate funding for the construction of roadways and major corridor improvements, including sidewalks, bus shelters, lighting, bicycle paths and landscaping. JTAMobilityWorks will create jobs and put people to work in our community.”
The initial order period for the bonds ended at 11:30 a.m. on Wednesday morning with over $400 million in orders. The strong demand allowed JTA and its advisors to negotiate better pricing before signing the Bond Purchase Agreement with J.P. Morgan this morning. The bonds will be paid off by 2036 through the extension of the Local Option Gas Tax.
“As a first time independent bond issuer, the market responded with a strong demand for our bond issuance,” said JTA Chief Executive Officer Nathaniel P. Ford Sr. “It is a reflection of the market’s high level of confidence and trust in JTA’s leadership team and solid financial position.”
The bonds received an AA rating with stable outlook from Standard & Poor’s Ratings Services and AA- with stable outlook from Fitch Ratings last month.
