Title
Order Authorizing The Sale And Issuance By The City Of Greensboro, North Carolina Of Not To Exceed $32,000,000 Combined Enterprise System Revenue Refunding Bonds, Series 2016 And Authorizing The Execution And Delivery Of Certain Documents In Connection Therewith
Body
Department: Finance and Legal
Council District: All
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Tom Carruthers, City Attorney, 373-2320
PURPOSE:
To approve the attached bond order authorizing the issuance and sale of up to $32.0 million Combined Enterprise (water and sewer) Revenue Refunding Bonds on or about January 14, 2016 to refinance an outstanding bond anticipation note.
BACKGROUND:
On November 16, 2015, the City Council, by resolution, authorized the filing of an application with the N.C. Local Government Commission requesting approval of the issuance of up to $32.0 million Combined Enterprise System (Water & Sewer) Revenue Refunding Bonds. The Commission is expected to approve sale of the Series 2016 Bonds on January 5, 2016.
The proposed bond issue consists of refinancing a $30.0 million Revenue Bond Anticipation Note (BAN) issued February 2014 under an interest-only construction draw program. Based on current market conditions the City projects issuing in January 2016, $26.4 million in bonds and receiving $4.0 million in bond premiums totaling $30.4 million. The revenue bonds are expected to have an average fixed interest cost of less than 4.00% over their 30-year term. The revenue bonds will be issued pursuant to a supplemental trust agreement with U.S. Bank (bond trustee) and a bond purchase agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated (Bank of America) and Loop Capital Markets LLC.
BUDGET IMPACT:
Bond proceeds of $30.4 million will be sufficient to pay off the outstanding note and bond issuance expenses. Annual debt service on the revenue r...
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