lease revenue refunding bonds - City of Norwalk
lease revenue refunding bonds - City of Norwalk
lease revenue refunding bonds - City of Norwalk
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<strong>City</strong> Council February 19, 2013<br />
Resolution No. 13-13 - Issuance <strong>of</strong> Lease Revenue Refunding Page No. 2<br />
Bonds Series 2013A & 2013B<br />
On October 31, 2001, the <strong>City</strong> approved the Financing Authority’s issuance <strong>of</strong> the<br />
Refunding Lease Revenue Bonds, 2001 Series A (“2001 Bonds”) in the original amount <strong>of</strong><br />
$12,795,000. The 2001 Bonds were originally issued to refinance existing 1995 Bonds<br />
and pay for construction <strong>of</strong> the civic center parking garage. The 2001 Bonds are currently<br />
outstanding in the amount <strong>of</strong> $7,945,000 with interest rates ranging from 4.125% - 5.25%.<br />
The final term <strong>of</strong> the 2001 Bonds is April 1, 2025. The 2001 Bonds can now be prepaid<br />
on October 1, 2013 without any penalty.<br />
Below is a summary <strong>of</strong> the key components <strong>of</strong> the 1999 Bonds and the 2001 Bonds:<br />
Series 1999 Bonds 2001 Bonds<br />
Amount Outstanding $7,295,000 $7,945,000<br />
Final Year <strong>of</strong> Payment 2029 2025<br />
Interest Rates 5.10% – 5.375% 4.125% – 5.25%<br />
Reserve Fund Cash Funded Bond Surety Policy<br />
Lease Asset <strong>City</strong> Hall Civic Center Parking<br />
Garage<br />
Earliest Prepayment August 1, 2013 October 1, 2013<br />
Date<br />
To Be Refinanced by Series 2013A Bonds Series 2013B Bonds<br />
Financing Structure<br />
The Financing Authority will issue about $15.7 million <strong>of</strong> <strong>refunding</strong> <strong>bonds</strong> to refinance the<br />
1999 and 2001 Bonds (“2013 Refunding Bonds”). The 2013 Refunding Bonds will be<br />
issued with the same final year <strong>of</strong> payment <strong>of</strong> 2025 and 2029 as the 1999 and 2001<br />
Bonds, respectively. The Financing Authority will need to issue the 2013 Refunding<br />
Bonds in two separate bond series (“2013A Bonds” and “2013B Bonds”, collectively the<br />
2013 Refunding Bonds) because each existing bond issue has a different prepayment<br />
date as set forth in the original financing documents.<br />
Like the 1999 and 2001 Bonds, the 2013 Refunding Bonds will be structured as a <strong>lease</strong><strong>lease</strong>back<br />
financing between the <strong>City</strong> and the Financing Authority. The Financing<br />
Authority is a <strong>City</strong>-controlled joint powers authority consisting <strong>of</strong> the <strong>City</strong> and the Parking<br />
Authority and was originally formed to facilitate bond financing. The Financing Authority<br />
has used the same financing structure for its prior <strong>lease</strong> <strong>revenue</strong> bond financings.<br />
Currently, the Financing Authority <strong>lease</strong>s the following assets from (and then back to) the<br />
<strong>City</strong>:<br />
- <strong>City</strong> Hall (<strong>lease</strong> asset for the 1999 Bonds); and<br />
- Civic Center Parking Garage (<strong>lease</strong> asset for the 2001 Bonds).