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OCII approves issuance of two refunding bond series to refinance redevelopment debt
Summary
The commission authorized issuance of taxable (2017 D) and tax‑exempt (2017 E) refunding bonds to refinance outstanding redevelopment project bonds, citing an upgraded AA‑ rating and large net present‑value savings; commissioners approved final bond documents and the official statement in substantial form.
The commission approved Resolution 43‑2017 to authorize issuance and sale of two series of refunding bonds (2017 D taxable and 2017 E tax‑exempt) to refinance outstanding redevelopment‑era bonds for various project areas.
John Daigle, senior financial analyst for OCII, explained the transaction: the 2017 D (taxable) refunding will have a par amount in the neighborhood of $118 million and refinance five outstanding bonds; the 2017 E (tax‑exempt) refunding has a par amount of about $20.3 million and refinances two outstanding bonds. Daigle said the bonds were priced with blended yields of roughly 3.5% (taxable) and about 3.6% (tax‑exempt), and that rating agencies upgraded the RPTTF credit to AA‑, citing growth in assessed value and closed senior credits. Staff reported net present value savings of approximately 20% (well above OCII’s 3% guideline).
The resolution approves the official statement in substantial form, delegates nonmaterial changes to the executive director, and authorizes related documents and disclosure certificates. Commissioners asked for confirmation of prevailing interest rates; staff confirmed the blended rates and average maturities. The motion passed on roll call with four ayes and one absence.
