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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Brian Reeves, Associate Chief Financial Officer |
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Brian Baker, Municipal Advisor, Zions Public Finance, Inc. |
TITLE:
title
Summary of the Series 2025 Bond Issuance
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational report for discussion on the final outcome of UTA’s bond tendering, refunding and issuance.
BACKGROUND:
Utah Transit Authority (UTA) issued $492.52 million in Sales Tax Revenue and Refunding Bonds to support multiple strategic financial objectives. The proceeds were used to finance the acquisition and construction of improvements on the transit system, purchase bonds tendered under a formal Tender Offer, and refund certain taxable bonds.
DISCUSSION:
The bond issuance was conducted in a competitive institutional market, with strong investor demand reflected in favorable pricing outcomes. Over 60 institutional investors participated, demonstrating broad market confidence in UTA’s credit quality and long-term capital strategy.
The tender offer saw $918.425 million in total par value offered, and $251 million participated, with $247 million accepted. Additionally, there was $204 million in par value refunded, followed with the new money raise of $128 million.
That coupled with the rating agencies responded positively to transaction affirming their respective credit rating view of UTA. The successful execution of this transaction highlights UTA’s proactive approach to debt management and its ability to attract significant institutional interest in support of its transit mission.
ALTERNATIVES:
N/A
FISCAL IMPACT:
Net present value savings of $18 million or 4.04% savings.
ATTACHMENTS:
None