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CDFA Bond Finance Update - June 6, 2017

Bond Finance Update
June 6, 2017
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CDFA Bond Finance Update

Features

MBFA to House Tax Panel Members: Support Tax-Exempt Bonds
The Municipal Bonds for America coalition, of which CDFA is a founding member, has sent a letter to the House Ways and Means Committee to support tax-exempt and private activity bonds.

Pounding the Drum for the Tax Exemption: #builtbybonds
Comprehensive federal tax reform presents issuers with a lot of uncertainty about whether tax-exempt municipal bonds will remain untouched, something the GFOA wants its members to take to social media about with photos of important bond-financed projects and using the hashtag #builtbybonds.

Exploring the Impact of the Port of Greater Cincinnati
Over the past 15 years, the Port Authority has been involved in transformative projects throughout Downtown and Over-the-Rhine. These projects have reshaped the skyline, revived historic structures for a new century, and created new regional anchors and cultural institutions.

Analysts: Muni Disclosure Varies by Sector
Investor analysts had high praise for the quality of disclosure in the healthcare and senior living spaces generally, but had more mixed responses when it came to charter schools and certain revenue and general obligation debt for governments and essential services, particularly for smaller or less frequent issuers.

KEDFA Approves $70M Bond Issuance for Kroger Distribution Center
The Kentucky Economic Development Finance Authority approved the issuance of up to $70 million in industrial revenue bonds to finance a massive Kentucky distribution center for Cincinnati-based grocery giant Kroger.

Federal Infrastructure Tax Credit Legislation Makes Key Changes from 2015 Proposal
Sens. John Hoeven, R-N.D., and Ron Wyden, D-Ore., reintroduced bipartisan legislation to establish a program to spur infrastructure investment using P3s through the creation of Move America Bonds and Move America Credits.

Lawyers Say Policies, Procedures Key for Issuers Amid SEC Focus on Enforcement
Strong policies and procedures and an awareness of recent Securities and Exchange Commission enforcement trends like individual liability and conflicts of interest are important if issuers want to avoid being caught up in SEC enforcement actions, several lawyers told government finance officials.

When Should Issuer Use Hold-the-Offering-Price Method to Establish Issue Price?
With new regulations going taking effect June 7, 2017, Squire Patton Boggs gives insight on the methods for determining the issue price and how the hold-the-offering-price method may come at a cost to issuers of tax-advantaged bonds.

$36M in Tax-Exempt Bonds Approved for Pistons Move
The addition of a professional basketball team at Little Caesars Arena will cost about $34.5 million. The Strategic Fund board approved the Detroit development authority's request to issue another $36 million in tax-exempt tax increment revenue bonds to fund the "construction improvements and related costs."

Issuers Anxious as New Issue Price Era Begins
Issuers are heading into uncharted waters with a new 10% issue price rule taking effect next month, and many members of the Government Finance Officers Association's Committee on Governmental Debt Management are anxious, even if the rule likely won't impact them much.

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The latest municipal finance headlines from The Bond Buyer.

MD Appeals Judge's Order Blocking Purple Line P3 Project
Maryland quickly appealed a federal judge's ruling that it must redo its ridership estimates for the $5.6 billion Purple Line rail project being financed as a public-private partnership in an attempt to resolve a question that has been holding up the project's progress since August.

Mnuchin: Administration Wants to Preserve Muni Bond Tax Exemption
The administration "strongly" supports the preservation of the tax exemption for municipal bonds, Treasury Secretary Steven Mnuchin said during a Senate Finance Committee hearing on Thursday.

SIFMA: All Bonds Used for Publicly Accessible Infrastructure Should Be Treated as GOs
Preserving the tax exemption for bonds, treating PABs more like governmental bonds without restrictions for publicly accessible projects, and reviving direct-pay bonds are some of the infrastructure funding recommendations that SIFMA has made to administration officials and members of Congress.

House Committee Democrats Offer $85B Infrastructure Bill
Democrats on the House Energy and Commerce Committee on Wednesday unveiled a bill that would provide more than $85 billion for drinking water, electric grid, renewable energy, brownfields, health care and broadband infrastructure.

CDFA is proud to partner with The Bond Buyer as our Official Media Sponsor. Read more about this partnership and all of its benefits here.

Bond Finance Headlines

$16M IDA Bonds May Support New St. Louis County Athletic Facility
St. Louis Post Dispatch | Jun. 6 | Bond Finance

$12.67M WHEFA Bond Financing Supports Odd Fellow
WHEFA | Jun. 5 | Bond Finance

Lease Revenue Bonds for New Contra Costa County Buildings Close
The Bond Buyer | Jun. 1 | Bond Finance

State Highway Officials Push for Fast Tracking of Trump Plan; Disagree with Some of His Ideas
The Bond Buyer | Jun. 1 | Bond Finance | Federal | Infrastructure Finance | State Finance Program

8 Facts to Know About Green Bonds
U.S. News & World Report | Jun. 1 | Bond Finance | Energy Finance | Green Finance

Administration Releases Encouraging Infrastructure Plan
The White House | May. 31 | Bond Finance | Infrastructure Finance | Legislative | Public-Private Partnership (P3) Financing | U.S. Dept. of Transportation (DOT) | U.S. Environmental Protection Agency (EPA)

CA Approved $600M in Bonds for Caltrain Electrification
ConstructionDIVE | May. 31 | Bond Finance | Infrastructure Finance

San Diego City Attorney Raises Doubts about Soccer Stadium Plan
The Bond Buyer | May. 25 | Bond Finance

Two Financial Advisors Pitching Plan to Fund $1T in Federal Infrastructure Spending
The Bond Buyer | May. 24 | Bond Finance | Federal | Infrastructure Finance

Purple Line Delay Extended, Could Be Terminal for P3 Project
The Bond Buyer | May. 24 | Bond Finance | Infrastructure Finance | Public-Private Partnership (P3) Financing

Now May be a Good Time to Buy IL Bonds
Crain's Chicago Business | May. 24 | Bond Finance

$987.9M General Obligation Bonds Will Support Infrastructure Across MN
KXRA | May. 24 | Bond Finance | Infrastructure Finance

Leaked Trump 2018 Budget Plan Cuts Funding for Transit, TIGER
The Bond Buyer | May. 22 | Bond Finance | Federal | Infrastructure Finance | U.S. Dept. of Transportation (DOT)

$1B P3 Terminal Proposed for Kansas City International Airport
The Bond Buyer | May. 19 | Bond Finance | Infrastructure Finance | Public-Private Partnership (P3) Financing

Analysts: Some Issuers Don't See How They and Holders of Their Bonds Can Be Hurt by Bank Loans
The Bond Buyer | May. 19 | Bond Finance

SEC Approves Continuing Education Reqs. for MAs; MSRB Promises Future Guidance
The Bond Buyer | May. 18 | Bond Finance | Municipal Securities Rulemaking Board (MSRB) | U.S. Securities and Exchange Commission (SEC)


Highlights from the Online Resource Database

Financing Water and Wastewater Projects with Tax-Exempt Bonds
Water Finance | Infrastructure Finance | Bond Finance
This guidebook, published by Orrick, Herrington & Sutcliffe LLP, provides an overview of issues relating to the financing of water and wastewater projects in general and financing with tax-exempt bonds in particular.


The Council of Development Finance Agencies is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private, and non-profit entities alike. For more information visit CDFA.net or email info@cdfa.net

For more information about sponsoring one of CDFA's electronic newsletters, please contact CDFA or call 614-705-1300.


Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net


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