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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
William Greene, Chief Financial Officer |
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Brian Baker, Financial Advisor, Partner at Zion Capital Advisors |
TITLE:
title
R2021-09-04 - Resolution Authorizing the Issuance and Sale by the Authority of its Sales Tax Revenue Refunding Bonds in the Aggregate Principal Amount of Not to Exceed $480,000,000; and Related Matters.
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2021-09-04 Authorizing the Issuance and Sale by the Authority of its Sales Tax Revenue Refunding Bonds in the Aggregate Principal Amount of Not to Exceed $480,000,000; and Related Matters.
BACKGROUND:
UTA issued bonds in 2015 to finance capital projects and refund previous bonds. These bonds represented the best rates at the time, but the market changes over time. The bonds being evaluated for possible refunding currently are the remaining 4.0%-5.0% Bonds of the 2015A Issues with principal payments of $405.27 million starting in 2021 and going through 2037.
DISCUSSION:
State statutes governing UTA’s bond refunding require several steps. The initial discussions for this bond refunding started with the Board of Trustees at their August 25th meeting. The State Bonding Commission concurrence occurred at their September 13th meeting. The Local Advisory Council was consulted about the refunding at their September 15th meeting. The Board now has to act on a resolution that would set terms of the potential refunding and authorize financial agents to carry out the process.
Zion Capital Advisors will present the latest financial forecast prepared for the refunding with the possible net present value savings and speculated interest rates in the market at the time of refunding.
We will be asking the Board to approve the resolution granting two of the following three individuals: the Treasurer of the Authority, the Interim Executive Director of the Authority or the Chair of the Board the Authority to conduct a competitive, negotiated or private placement sale for the Series 2021 Bonds pursuant to the terms of the Official Notice of Bond Sale or the Bond Purchase Agreement, as applicable, and, select the purchasers or underwriters of the Series 2021 Bonds; and execute a Certificate of Award confirming the sale of the Series 2021 Bonds to the winning bidder pursuant to the Official Notice of Bond Sale or the Bond Purchase Agreement. A future resolution approving the final principal amounts, interest rates, terms, maturities, redemption features, and purchase price at which the Series 2021 Bonds shall be sold will be discussed by a separate resolution at the October 13, 2021 Board of Trustee meeting.
ALTERNATIVES:
Take no action at this time to refund the 2015A Bonds.
FISCAL IMPACT:
The refunding could benefit UTA with an overall reduction in interest paid on bonds, and possibly restructuring on UTA current debt portfolio maximums in 2029 with a net present value savings of at least five percent.
ATTACHMENTS:
R2021-09-04_Resolution_Authorizing_the_Issuance_and_Sales