|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Viola Miller, Chief Financial Officer |
|
|
Rob Lamph, Assistant Treasurer |
|
|
Brian Baker, Zions Bank |
TITLE:
title
Issuance and Sale of the Authority’s Sales Tax Revenue Refunding Bonds
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Discussion item for feedback regarding opportunity to pursue issuing bonds for the purpose of refunding 2009 and 2010 Build America Bonds or a tender offer.
BACKGROUND:
UTA currently has 2009 and 2010 Build America Bonds (BABs) totaling $461,450,000 of refundable par. These bonds pay an annual subsidy. Recent Federal government actions have reduced the amount of the subsidy paid.
DISCUSSION:
Current market conditions may allow UTA to refinance the BABs by issuing tax-exempt bonds, potentially achieving overall debt savings. If the Board authorizes refinancing of the BABs, UTA would reduce the risk of future subsidy reductions. UTA could also have a future opportunity to refinance the new bonds at a lower rate to achieve additional savings. UTA may also have an opportunity to present a tender offer on additional bonds.
This discussion will seek feedback from the Board of Trustees prior to pursuing further review by the State Finance Review Commission and the Local Advisory Council before returning to the Board for approval.
ALTERNATIVES:
Not refinance the 2009 and 2010 BABs
FISCAL IMPACT:
Approximate debt service savings of $24.4 million over 19 years.
ATTACHMENTS:
None