Title
Approval of the 2022 Bond Program Underwriting Team
Body
Agenda of: May 11, 2022
Item No.: 2022-179
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: May 11, 2022
RE: Approval of the 2022 Bond Program Underwriting Team
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer & Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA):
1) Approves Siebert Williams Shank & Co. as Bookrunning Senior Managing Underwriter;
2) Approves Goldman Sachs as Co-Senior Managing Underwriter;
3) Authorizes a Takedown of $2.50 per bond (plus reimbursable expenses);
4) Approves Citigroup, JP Morgan Securities LLC, Morgan Stanley & Co., Ramirez & Co., Loop Capital and Wells Fargo as Co-Managers;
5) and authorizes the Interim CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA's ten-year financial plan and the five-year capital improvement plan outline the need for a 2022 bond financing program. In addition, there are potentially favorable market conditions for a bond refunding. In prior GLWA financing programs, funding was also sought for the local water supply and local sewer disposal systems (Detroit Water & Sewerage Department, DWSD). For 2022, the management for the local water supply and local sewer disposal systems (Detroit Water & Sewerage Department, DWSD) has indicated that no additional bond proceeds beyond state revolving fund loans are requested by DWSD for at least the next two years.
The next step to begin the 2022 bond financing program is to select an underwriting team including a Book Running Senior Manager, Co-Senior Manager, and Co-Managers.
The Great Lakes Water Authority Debt Management Policy (page 5) provides the following overall guidance related to the selection of the senior ...
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