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File #: 2020-253    Version: 1 Name:
Type: Presentation Status: Filed
File created: 7/20/2020 In control: Board of Directors
On agenda: 7/22/2020 Final action: 7/22/2020
Title: Presentation: Recap of 2020 Bond Transactions
Sponsors: Nicolette Bateson
Indexes: Finance
Attachments: 1. 4.1 GLWA Board Presentation Bond Sale Report_7.22.2020, 2. 4.2 Forecast Update 061720, 3. 4.3 S&P Bulletin-GLWA WATER Ratings Unaffected By COVID19 Pandemic Apr-29-2020, 4. 4.4 GLWA Press Release- May 1 2020 Ratings Agency Upgrades and Bond Sale, 5. 4.5 RatingsDirect_Bulletin GLWA SEWER Ratings UnaffectedByCOVID19Pandemic_Jun-03-2020
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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