HomeMy WebLinkAboutIR 10289
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10289
June 25, 2019
To the Mayor and Members of the City Council
Page 1 of 3
SUBJECT: FINAL RESULTS OF BONDS ISSUED UNDER THE 2019 DEBT
PLAN
This informal report is intended to provide a summary of the results from the bond sales issued under the
2019 Debt Plan including: Series 2019 Water and Sewer Revenue Bonds, Series 2019 General Purpose
Bonds, and Series 2019 Tax Notes.
Background
On May 7th, 2019 the Mayor and Council approved items relating to three debt transactions as follows:
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1. The 34 supplemental bond ordinance authorizing the sale of Water and Sewer System Revenue
Bonds, Series 2019 to provide funding for capital improvements in alignment with the water and
sewer system capital improvement plan;
2. An ordinance authorizing the sale of General Purpose Bonds, Series 2019 to fund various capital
projects authorized under the 2014 and 2018 Bond Programs; and
3. An ordinance authorizing the sale of Tax notes, Series 2019 to fund the purchase or replacement
fire apparatus and TPW equipment.
The bonds were offered utilizing a competitive sale process with the assistance of our co-financial
advisors, FirstSouthwest, a Division of Hilltop Securities Inc., and Estrada Hinojosa & Co. Results of the
bond pricings are highlighted on the following pages.
Overview of Pricing
Series 2019 Water & Sewer Revenue Bonds
Water and Sewer System issue (AA+/Aa1/AA) priced with an average life of 18.262 years and a
true interest cost (TIC) of 3.05%. To summarize the transaction, the City sold a total of $93,340,000 in
bonds to fund various improvements to the water and sewer system totaling $100,000,000. The Series
2019 bonds were sold with a premium such that the total proceeds generated was $100,407,272.
Bids were received from nine firms. The chart below depicts the firm and the associated true interest cost:
Bidder TIC
Wells Fargo Bank, National Association 3.0358%
Robert W. Baird & Co., Inc. 3.0462%
Bank of America Merrill Lynch 3.0655%
Barclays Capital Inc. 3.0698%
Citigroup Global Markets Inc. 3.0739%
Mesirow Financial, Inc. 3.0803%
Morgan Stanley & Co, LLC 3.0853%
RBC Capital Markets 3.0865%
J.P. Morgan Securities LLC 3.1144%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10289
June 25, 2019
To the Mayor and Members of the City Council
Page 2 of 3
SUBJECT: FINAL RESULTS OF BONDS ISSUED UNDER THE 2019 DEBT
PLAN
A summary of the final results compared to the original estimates is provided below:
Summary of
Projection Parameters Final Results
Financing Results
New Money Not to Exceed
$100,000,000 $100,407,273
Proceeds $101,040,000
True Interest Cost 3.34% 3.05%
Average Life (years) 18.075 18.112
Wells Fargo Bank, National Association was the winning bid.
Series 2019 General Purpose Bonds
General Purpose (GO) issue (AA+/AA+/Aa3/AA) priced with an average life of 7.506 years and
a TIC of 2.56%. To summarize the transaction, the City sold a total of $106,595,000 in bonds to fund
projects authorized under the 2014 and 2018 Bond Programs totaling $114,725,000. The Series 2019
bonds were sold with a premium such that the total proceeds generated was $115,206,117.
Bids were received from four firms. The chart below depicts the firm and the associated true interest cost:
Bidder TIC
Morgan Stanley & Co, LLC 2.5584%
Bank of America Merrill Lynch 2.6036%
Citigroup Global Markets Inc. 2.6385%
Barclays Capital Inc. 2.6478%
Wells Fargo Bank, National Association 2.6491%
A summary of the final results compared to the original estimates is provided below:
Summary of
Projection Parameters Final Results
Financing Results
New Money Principal Not to Exceed
$115,696,803 $115,490,851
Proceeds $114,725,000
True Interest Cost 2.97% 2.56%
Average Life (years) 8.73 8.68
Morgan Stanley & Co, LLC was the winning bid.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10289
June 25, 2019
To the Mayor and Members of the City Council
Page 3 of 3
SUBJECT: FINAL RESULTS OF BONDS ISSUED UNDER THE 2019 DEBT
PLAN
Series 2019 Tax Notes
Tax Note (GO) issue (AA+/AA+/Aa3/AA) priced with an average life of 3.84 years and a TIC of
1.54%. To summarize the transaction, the City sold a total of $8,565,000 in bonds to fund improvements
related to the purchase of replacement fire apparatus and TPW equipment totaling $9,560,000. The Series
2019 tax notes were sold with a premium such that the total proceeds generated was $9,645,340.
Bids were received from four firms. The chart below depicts the firm and the associated true interest cost:
Bidder TIC
Morgan Stanley & Co, LLC 1.5382%
J.P. Morgan Securities LLC 1.5708%
Wells Fargo Bank, National Association 1.5744%
Robert W. Baird & Co., Inc. 1.6631%
SWBC Investment Services, LLC 1.6987%
A summary of the final results compared to the original estimates is provided below:
Summary of
Projection Parameters Final Results
Financing Results
New Money Principal Not to Exceed
$9,667,598 $9,645,340
Proceeds $9,725,000
True Interest Cost 2.08% 1.54%
Average Life (years) 3.842 3.840
Morgan Stanley & Co, LLC was the winning bid.
If you have any questions, please call Kevin Gunn, Interim Chief Financial Officer, at 817-392-8517.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS