West Chicago finance committee approves $9.495 million general-obligation bond sale

The Finance Committee of the City of West Chicago on March 16 approved an amended ordinance to issue $9,495,000 in general-obligation bonds to finance capital improvements, including street and roadway projects. The committee voted by roll call to adopt the ordinance after the city completed an open auction for the bonds.

Anthony Miceli, a financial adviser with Spirit Financial, told the committee the city received 12 bids from two underwriters in this morning’s auction. “We received 12 bids from two bidders,” Miceli said, adding that the winning bid came from Stifel, Nicholas and Company at an original 3.8527% and that Robert W. Baird and Company was a close second at 3.8554%. Miceli said competitive rebidding in the 15-minute open process helped tighten spreads and produced a final resized par of $9,495,000 with a final yield of about 3.8524%.

Miceli said the sale is scheduled to close April 7. After premium and netting issuance costs, he said the city will receive $9,738,516.08 in project proceeds. Committee members asked about issuance expenses; Miceli pointed to the packet’s detailed cost breakdown and stated the fixed cost of issuance was $882,190, with underwriting fees embedded in the winning bid and shown in the source-of-funds schedule.

A city staff member who introduced the presenters thanked Spirit Financial and bond counsel Chapman and Cutler for streamlining the transaction. “They were there every step of the way,” the staff member said.

Committee members moved to amend the ordinance’s stated par amount to match the auction result and read the amended ordinance on the record, updating the par amount to $9,495,000 while keeping the authorizing language for street and roadway capital projects and for levying a direct annual tax sufficient to pay principal and interest. The roll-call vote recorded all present aldermen voting "Aye," and the motion passed.

Committee members also confirmed the earliest call date for the bonds is on or after Dec. 30, 2035. Miceli said Spirit Financial would not manage any post-sale investment of proceeds; the city would need a separate investment manager or bank for interim investments.

The ordinance, listed on the agenda as Ordinance No. 2600004, will proceed to closing on April 7, when the city expects to receive the net project proceeds.