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CDFA Bond Finance Update - April 16, 2019

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Bond Finance Update
April 16, 2019
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CDFA Bond Finance Update


PR Fiscal Agency Enters Into Agreement to Restructure Infrastructure Entity, Port Bonds
Puerto Rico Gov. Ricardo Rosselló Nevares recently announced that the Puerto Rico Fiscal Agency and Financial Advisory Authority, on behalf the Infrastructure Financing Authority (Prifa) and the Ports Authority entered into a restructuring support agreement (RSA) with the Ad Hoc Group of holders of bonds issued in 2011.

Small NH Town Issues Bond to Solve Broadband Last-Mile Dilemma
Voters in the small town of Chesterfield approved a $1.8 million bond to string fiber to every home and business in the community of 3,500 people. It will be done through a public-private partnership with Consolidated Communications, who will pay the other $2.5 million estimated cost of stringing fiber to each resident in the town.

IRS Says Bond Financing Can Be Used for Housing for Vets, Others
The IRS has clarified that tax-exempt private-activity bonds can be used to finance affordable housing developments for veterans, farmworkers, and other populations. The guidance became necessary after IRS officials indicated that such housing was potentially a violation of the general public-use requirements in bond regulations last year.

The Math Behind Nashville, TN's $750 Million Housing Announcement
Under the plan, the city would invest $350 million in new housing through bond sales. An additional $150 million would be allocated to the Barnes Fund, the city's housing trust fund created in 2013. The remaining $250 million from foundations and the private sector is not yet committed.

CA Sells $600M in Bonds for High-Speed Rail Project
California has sold $600 million in bonds to help pay for its high-speed rail project even as lawmakers and Gov. Gavin Newsom acknowledge challenges to completing the line between Los Angeles and San Francisco. The bond money is a key source of financing for the troubled project, which has been beset by cost overruns and delays.

Despite Objections, Wichita, KS Executes Private Development Deal Near Stadium Project
Despite objections from residents, the city council voted to sell land around a new baseball stadium. The $77 million stadium project - as well as additional infrastructure and improvement work - is being funded largely by three streams: a TIF District; an added 2% sales tax within a Community Improvement District; and STAR bonds.

Joplin, MO Recovery TIF Expected to Pay Bonds Off Early
The Joplin Recovery TIF includes virtually all of the disaster area from the May 2011 tornado and was established in 2013. The recovery TIF was originally expected to be paid off in 2033, but now is projected to be paid off by 2020. Once paid off, it's expected to generate more than $3 million in tax revenue.

How to Survive the Zombie LIBOR Apocalypse
They're out there now, in small towns and big cities, getting ready to rise up and wreak financial havoc on unsuspecting bond issuers and borrowers. Unless they're sought out early and neutralized, the zombie LIBOR interest rates could take a big bite out of municipalities, hospitals, colleges and other institutions and borrowers with outstanding bonds, loans or swap contracts bearing interest rates tied to LIBOR.

Market Reports

Weekly Rate Update
KPM Financial | Apr. 15 | Bond Finance | Bond Finance\Market Reports

Weekly Market Outlook
Moody's Analytics | Apr. 11 | Bond Finance | Bond Finance\Market Reports

Weekly Capital Markets Update
Wye River Group | Apr. 5 | Bond Finance | Bond Finance\Market Reports

Upcoming Events
CDFA Summer School

CDFA - PFM Capital Markets Webinar Series - Emerging Technology and the Capital Markets
April 16, 2019 - 2:00 - 3:30 PM Eastern
Technology is changing the capital markets through debt management technology and advanced market data analysis. These technologies have the capacity to change the issuance of bonds forever. Such technologies will enable bond issuers to strategically connect with investors with bonds and manage ongoing obligations. This session will focus on how technological advances will affect the bond markets.

News from The Bond Buyer

The latest municipal finance headlines from The Bond Buyer.

Impressed Investors Snap Up Bonds for FL High-Speed Train
In the largest municipal bond deal of its week, the $1.75 billion of unrated private activity bonds priced with the Florida Development Finance Corp. as the conduit issuer on behalf Virgin Trains USA, formerly known as Brightline. Morgan Stanley was the lone underwriter.

LA State Bond Commission Approves $650M Highway Borrowing Plan
The first installment on a $650 million highway borrowing plan, including major projects in New Orleans and Baton Rouge, has been approved by the Louisiana State Bond Commission.The commission endorsed the sale of $185 million in bonds, including about $77 million for a new entrance to Louis Armstrong New Orleans International Airport.

$623M in Bonds to Finance Indianapolis, IN Criminal Justice Complex
Indianapolis and Marion County will sell more than $623 million of tax-exempt debt that taps a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans. The consolidated city-county government is pricing $610 million of bonds for the long-anticipated project, plus roughly $13 million of bonds to finance an assessment and intervention center.

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

Brightmark Closes Financing for First U.S. Plastics-to-Fuel Plant
Waste Today | Apr. 15 | Bond Finance | Energy Finance | Green Finance

BlackRock: Investors Underpricing Impact of Climate-Related Risks
IR Magazine | Apr. 14 | Bond Finance | Resiliency

Muni-Bond Buyers Want Tax Breaks. Saving the Earth? Not Much
Bloomberg | Apr. 11 | Bond Finance | Energy Finance | Green Finance | Water Finance

LA County Board Approves Bond Financing for Art Museum
CBS Los Angeles | Apr. 9 | Bond Finance | Community Development

Denison, TX Issues Bond for Water, Sewer Work
Herald Democrat | Apr. 8 | Bond Finance | Infrastructure Finance | Water Finance

Tuscon, AZ Affordable Housing Capital Stack Filled by Bonds, TIF, Tax Credits
Arizona Business Daily | Apr. 5 | Bond Finance | Housing Finance | Tax Credits | Tax Increment Finance (TIF)

AK House Finance Committee Kills School Bond Debt Reimbursement
Daily News-Miner | Apr. 4 | Bond Finance | State Finance Program

Revenue Procedure Clarifies that Veterans Housing is Eligible for Bond Financing
Novogradac & Co. | Apr. 4 | Bond Finance | Federal | Internal Revenue Service (IRS) | Housing Finance

How the Supreme Court Just Raised the Stakes in Muni Disclosure
The Bond Buyer | Apr. 3 | Bond Finance | U.S. Securities and Exchange Commission (SEC)

10-Point Funding Plan to Fix Nation's Infrastructure
NYREJ | Apr. 2 | Access to Capital | Bond Finance | Infrastructure Finance | Public-Private Partnership (P3) Financing

NJ Stormwater Law May Spur Resiliency Bonds
The Bond Buyer | Mar. 28 | Bond Finance | Green Finance

NC Eyes Consolidation of Aging Rural Water Systems
NC Health News | Mar. 26 | Bond Finance | Infrastructure Finance | Water Finance

$2.8B IN Fertilizer Plant Project Back on Track
San Francisco Chronicle | Mar. 26 | Bond Finance | Incentives | Tax Credits

A Closer Look at Environmental Impact Bonds
Water FM | Mar. 25 | Bond Finance | Energy Finance | Green Finance | Water Finance

What Are Green Bonds and How ‘Green' Is Green?
The Washington Post | Mar. 25 | Bond Finance | Energy Finance | Green Finance | Water Finance

What We Need to Do to Fix U.S. Infrastructure
The Hill | Mar. 25 | Bond Finance | Infrastructure Finance | Water Finance

Power Company Offering Green Bonds for Wind Power
PR Newswire | Mar. 25 | Bond Finance | Energy Finance | Green Finance

Holmen, WI Moves Ahead with Water Treatment Plant
Coulee Courier | Mar. 22 | Bond Finance | Water Finance

CT Proposes P3 Approach to Impose Tolls
The CT Mirror | Mar. 21 | Infrastructure Finance | Public-Private Partnership (P3) Financing

IRS Data Shows 2019 LIHTC Ceiling and Tax-Exempt PAB Cap Will Increase.
Novogradac & Company | Mar. 20 | Bond Finance | Internal Revenue Service (IRS) | Tax Credits | Housing Finance

Highlights from the Online Resource Database

Building Resiliency Through Green Infrastructure
Bond Finance | Green Finance | Infrastructure Finance | Revolving Loan Funds (RLFs) | Water Finance
Cities have recently integrated more green infrastructure strategies into their climate resiliency planning. Creating climate-resilient cities takes more than a series of infrastructure investments; more than sea walls and permeable pavement. It takes investment in people. Those most vulnerable to the effects of climate change are those without living wages or access to political power—very often communities of color.

Fundamentals of Bond Financing in Georgia
Bond Finance
From the Georgia Development Authority Handbook, Chapter 8 explains in great detail how bond financing works in Georgia.

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

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