HomeMy WebLinkAbout2021-048 Bond SaleDate: July 9, 2021 Report No. 2021-048
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
City’s most recent competitive bond sales for the Series 2021 General Obligation Bonds and Certificates of
Obligation.
BACKGROUND:
The purpose of this report is to provide the City Council with details regarding the sale of Series 2021
General Obligation Bonds and Certificates of Obligation authorized on June 8, 2021 with Bond Ordinances
21-1031 and 21-1032.
DISCUSSION:
On June 22, 2021, the City along with its financial advisor, Hilltop Securities, conducted competitive sales
for $54,710,000 in General Obligation (GO) Bonds and $97,035,000 in Certificates of Obligation (CO). The
delivery date of the funds to the City will be on July 20, 2021.
The GO bonds were awarded to FHN Financial Capital Markets and the CO’s were awarded to R.W. Baird
& Co., Inc., the lowest true interest cost bidders on both bids. Below is a list of all participating firms who
placed bids on each issuance.
GO Participating Firms Bid Submission CO Participating Firms Bid Submission
1. FHN Financial Capital Markets 1.873904% 1. Robert W. Baird & Co., Inc. 2.12306%
2. Citigroup Global Markets, Inc. 1.985889% 2. Citigroup Global Markets, Inc. 2.173158%
3. Wells Fargo Bank, NA 2.026748% 3. Bank of America Merrill Lynch 2.211753%
4. Raymond James & Associates, Inc. 2.033895% 4. Raymond James & Associates, Inc. 2.12733%
5. Wells Fargo Bank, NA 2.244790%
The GO bonds included the issuance of $54,710,000 to fund the second year of voter approved projects from
the November 2019 bond election. As approved by the City Council on June 8, 2021, the bond sale met all
the following required parameters listed below:
- Maximum principal amount of sale is $59,410,000;
- Final stated maturity of February 15, 2041;
- Maximum net effective interest rate of 2.25%;
- Delegation authority ends December 8, 2021.
Concurrently, the City also completed the competitive CO sale for $97,035,000 general government, electric,
water, and wastewater projects. As approved by the City Council on June 8, 2021, the CO sale met all the
following required parameters listed below:
-Maximum principal amount of sale is $104,240,000;
-Final stated maturity of February 15, 2051;
-Maximum net effective interest rate of 2.50%;
-Delegation authority ends December 8, 2021.
Date: July 9, 2021 Report No. 2021-048
The all-in true interest cost for the GOs is 1.91%, and 2.16% for the COs which factors in the interest rate
received plus all issuance costs. City staff was pleased with the results of both sales.
Please do not hesitate to contact me if you have any further questions on the results of the City’s most recent
debt issuance.
STAFF CONTACT:
Randee Klingele, Treasury Manager
940-349-8206
randee.klingele@cityofdenton.com