Unique Characteristics of Project: From 2014 to 2017, NHA helped manage over $1 billion of bond transactions that ultimately delivered over $100 million of savings to taxpayers and significantly increased the City’s liquidity position through repayment of several loans. Multiple GO, sales tax and tax allocation bond issuances were uniquely tied together and required complex analytical modeling to develop a holistic approach.
Executive Summary: Eric Scriven and Mike Meyer advised the City on the $29 million 2014 GO Bonds, $337 million 2015 Senior Sales Tax Revenue Bonds, $51 million Subordinate Sales Tax Revenue Bonds, $575 million of 2017 Refunding TABs (6 series) and $34 million of 2017 Senior Sales Tax Revenue Refunding Bonds.
The Successor Agency to the Industry Urban Development Agency successfully completed a $575 million refinancing on July 2, 2015. This transaction secured over $100 million of savings for taxing agencies who receive property taxes from the City’s taxable parcels. Mike Meyer and Eric Scriven from NHA served as municipal advisor to the Successor Agency for over 3 years to design and implement this plan of finance to bring these savings to fruition. NHA helped the Agency garner “A” category underlying ratings, bond insurance, and reserve fund sureties for the majority of the deeply complex issuance, which ultimately was composed of six series of bonds, including taxable and tax-exempt and senior and subordinate lien bonds. NHA and the rest of financing team utilized a Marks-Roos financing structure to help the Agency achieve its multiple objectives, including a cross collateralization of its three project areas to enhance the credit. NHA was also instrumental in creating a dynamic flow of funds legal structure that passed muster with rating agencies, insurers, and investors, and helped the Agency to best leverage its unique, two-part tax revenue pledge. Through the refinancing of the Agency’s subordinate TABs, the City’s General Fund (owner of the refunded subordinate TABs) liquidity position increased by approximately $450 million.
The 2015 Sales Tax Bonds helped the City to further bolster its liquidity position and capital project funding capacity by delivering over $230 million of new money proceeds through enhanced leveraging of its sales tax revenue.