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Waukesha committee approves amendment to $7.08 million industrial revenue bonds for local manufacturer
Summary
The committee approved a resolution to amend terms of $7,080,000 in industrial development revenue bonds (series 2015) for Production Service Company (parent of Oberlin Filter) to update regulatory language and interest-rate indexing after the original bond issuer was bought; staff said the change does not affect the city's financial liability.
The Waukesha City Finance Committee on Nov. 11 approved a resolution amending language in $7,080,000 in industrial development revenue bonds, series 2015, that were issued for Production Service Company to finance its facility on Silver Nail Road.
Staff explained these industrial development revenue bonds are conduit financing: the city acts as a pass-through issuer and is not on the hook for repayment. The bonds were issued March 18, 2015, to finance a facility (opened 2016) used by Production Service Company, which is a parent company for Oberlin Filter. Staff said a bank that had been the bonds'paying agent was purchased by another bank and regulatory requirements changed, so the amendment updates interest-rate indexing language without changing principal or term.
"It's kind of something that has to go through city approval," staff said, and added that the change "really has no impact on the city." Committee members had no substantive objections and approved the resolution by voice vote, 4-0.
The item was listed as ID 25-02465 and carries a principal amount of $7,080,000 as described on the meeting cover sheet. The amendment updates contractual language to align with the new bank and regulatory practice; staff said it does not increase the city's exposure or change repayment terms for the bonds.
