Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bonds topic
No spam. Unsubscribe anytime.
JUICE bond plan: second tranche likely $78–79M; first payment due Feb. 15, 2027
Summary
JUICE staff and advisors told the council they expect to issue about $78–79 million in revenue bonds for the engine plant’s second tranche; pro forma shows coverage above the required 1.25 debt-service test and pricing was targeted for late April with closing in late May.
JUICE representatives and the city’s finance advisor briefed the council on a proposed second tranche of revenue bonds to fund the engine plant and substation upgrades.
Paul, the advisor, said the JUICE Board approved parameters authorizing up to $95 million but that market conditions point toward a likely issuance near $78–79 million. "As far as our parameters, we're looking at 95,000,000," he said, adding: "We're actually probably gonna be closer to around 79,000,000 as far as a bond issue amount." He also said pricing was tentatively scheduled for April 28 (possibly April 29) with a closing targeted for May 28 and that the first payment on the bonds will be Feb. 15, 2027.
Paul and Michelle walked the council through pro forma coverage showing JUICE could meet the additional bonds test (125% coverage) under a 0-growth scenario using the FY25 audit numbers. The presentation noted estimated interest of about 5.18% and an assumed pricing cushion; advisors said coverage in the longer-term business plan is likely to be stronger (around 1.50–1.60x) to support the utility’s rating.
No action was required of the council that evening; staff said they would return with final pricing results to the council and the JUICE Board once the sale and pricing were complete.
