Title
Presentation: Recap of 2020 Bond Transactions
Body
Agenda of: July 22, 2020
Item No.: 2020-253
Amount: Not Applicable
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 22, 2020
RE: Presentation: Recap of 2020 Bond Transactions
MOTION
Upon recommendation of Sue McCormick, Chief Executive Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), receives and files the Presentation: Recap of 2020 Bond Transactions, and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Over the course of the past year, the Great Lakes Water Authority has monitored a trend of decreasing interest rates to determine if there were financially feasible bond refunding opportunities to secure a lower annual debt service requirement. On December 23, 2019, the financing team kicked off the process to develop the legal and financial analysis and documents anticipating a water and sewer transaction in calendar year 2020 for secure financial savings from water and sewer system refunding bonds and new money for the Detroit Water & Sewerage Department (DWSD) water system improvements in accordance with lease agreements.
In early March 2020, GLWA met with three rating agencies in anticipation of an upcoming transactions. All three agencies provided positive results. Nearly a week later, the COVID-19 pandemic declaration of emergency diverted priorities as well as created market uncertainty. As markets subsequently stabilized, GLWA was able to proceed with two successful transactions.
JUSTIFICATION
Due to the unique market conditions, the water and sewer system transactions were executed separately at a time that was ideal for the respective offering. Each is discussed below. The bond financing team has provided a consolidated presentation (attached...
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