|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Viola Miller, Chief Financial Officer |
|
|
Brian Reeves, Associate Chief Financial Officer |
|
|
Brian Baker, Zions Public Finance |
TITLE:
title
Bond Issuance Strategy for Potential Refinancing Opportunity
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational item for staff to receive strategic direction from the Board before moving this financing opportunity forward for review by the State Finance Review Commission and Local Advisory Council. The financing opportunity includes the potential to refinance existing debt at a lower cost, enabling the organization to capture significant savings.
BACKGROUND:
As of December 31, 2025, UTA has approximately $2 billion in outstanding senior and subordinate sales tax revenue bonds. These bonds play a crucial role in funding UTA’s transit services across a six-county region, supporting bus, light rail, commuter rail and other operations. Many of these services rely on sales tax revenue bonds to supplement capital funding.
The UTA staff have identified an opportunity to optimize its existing debt profile by refinancing certain outstanding bonds to reduce overall debt service costs.
The proposed financing strategy includes the potential to refinance Series 2016, Subordinated Sales Tax Revenue Refunding Bonds, at a lower interest rate, thereby reducing overall borrowing costs. This approach would allow the organization to capture meaningful savings over the life of the debt, improve cash flow, and strengthen financial flexibility. In addition to lowering funding costs, refinancing may also provide an opportunity to optimize debt structure and align repayment terms with long-term capital planning objectives.
DISCUSSION:
UTA’s staff and Municipal Advisor, Zions Public Finance, will present information to the Board about the refinancing strategy.
After this meeting, if the Board concurs, the Authority will proceed with statutorily required consultations with the State Finance Review Commission and UTA’s Local Advisory Council. Final authorization to proceed with this financing opportunity will require future review and approval by the Board of Trustees.
ALTERNATIVES:
This proposal is subject to available capital markets and potential investor appetite.
Should the Authority not pursue this refinancing opportunity, the current debt service schedule will remain in place.
FISCAL IMPACT:
Refinancing the bonds, an aggregate net present value savings amount of at least $1 million and a target 3-5% range.
ATTACHMENTS:
None