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CDFA Bond Finance Update - October 20, 2020

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Bond Finance Update
October 20, 2020
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CDFA Bond Finance Update

Features

The First CDFA Charter Schools Financing Initiative Paper Is Here! Development Finance Strategies for Charter Schools
CDFA has released the first publication of the CDFA Charter Schools Financing Initiative series, funded with support from the National Alliance For Public Charter Schools. This paper demonstrates how charter schools can access development finance tools and provides real-world examples of how these tools resources have been successfully implemented across the nation.

Thursday: Tune in for Pricing Private Activity Bonds in Complex Capital Stacks
During this Thursday's installment of the CDFA-PFM Capital Markets Webinar Series, we will share innovative thinking on how issuers can structure their fees, evaluating the volume and the types of bonds most often used in larger projects, and look at how high-performing development finance agencies assist in financing projects at all levels. Project finance experts and issuers will discuss the viability of how private activity bond deals can fit into complex capital stacks.

IRS Releases Guidance on the Transition From LIBOR
The IRS recently released helpful guidance in Revenue Procedure 2020-44 to assist the market's transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates (IBORs) to alternative reference rates. LIBOR is set to be phased out after the end of 2021.

Minnesota Senate Approves Record $1.9B Infrastructure Package
The Minnesota Legislature cleared the largest public works infrastructure package in state history, overwhelmingly passing a long-delayed bill authorizing nearly $1.9 billion in public borrowing to pay for roads, wastewater treatment, and a slew of major construction projects.

A Technology Solution For Muni Bond Disclosure
This article discusses how, just as the then-new technologies of a decade ago transformed disclosure in the municipal bond market, today's current technologies and data sciences portend further transformations. And, just as before, there are those that embrace them—and those that oppose them.

Coronavirus Rating Action Tracker for Structured Finance and Covered Bonds
Fitch's Coronavirus Rating Action Tracker For Structured Finance and Covered Bonds monitors all public structured finance and covered bonds rating actions taken after 1 March. The Data tab includes line-by-line data for every transaction / program that was reviewed since the start of the pandemic.

WIFIA: Examining Synergies with the Muni Bond Market
In theory, a WIFIA loan should always be a cheaper alternative than the market equivalent, right? In practice, things are not so straightforward. Instead of simple pro-rata substitution based on lowest rates, muni bonds and a WIFIA loan can be combined synergistically in ways that will further reduce cost and may expand structural options.

John A. Stalfort Elected Fellow of American College of Bond Counsel
Miles & Stockbridge, a leading business law firm with more than 220 lawyers in the mid-Atlantic region, announced that Washington, D.C. Managing Principal John A. Stalfort has been elected a Fellow of the American College of Bond Counsel, which recognizes leading public finance lawyers throughout the United States and promotes high ethics and professionalism in the practice of public finance law.

Market Reports

Weekly Market Outlook
Moody's Analytics | Oct. 15 | Bond Finance | Market Reports

Capital Market Insights
Wye River Group | Oct. 13 | Bond Finance | Market Reports

Upcoming Events
CDFA Virtual National Summit: Financing Our COVID Recovery

CDFA-PFM Capital Markets Webinar Series: Pricing Private Activity Bonds in Complex Capital Stacks
October 22, 2020 - 2:00 - 3:30 PM Eastern
During this installment of the CDFA-PFM Capital Markets Webinar Series, project finance experts and issuers will discuss the viability of how private activity bond deals can fit into complex capital stacks.

Reframe, Build, Plan: Restoring America's Local Food Systems
Thursday, October 29, 2020 - 1:00 PM Eastern
CDFA recently released the final publication of the CDFA Food Finance White Paper Series, Advancing Local Food Systems Through Development Finance. Join us for an overview of this publication as we review CDFA's framework for expanding traditional financing and attracting capital to local food systems through the Reframe, Build, Plan approach.

News from The Bond Buyer

The latest municipal finance headlines from The Bond Buyer.

Healthcare, Taxable Deals Push Muni New-Issue Slate up to $16.4B
The new-issue calendar is stuffed with all types of healthcare deals and taxable offerings, inflating its size up to almost $16.5 billion, once again the largest supply slate of 2020. Healthcare deals and taxable sales feature prominently on the list of new deals, but offerings from the states of California, Hawaii, Illinois as well as tobacco bonds round out the slate along with some big competitive issues.

SEC Enforcement Approach May Hinge on Election Results
The next appointed SEC is likely to be more polarizing, and the SEC's approach to enforcement will differ depending on who wins the presidential election. Current SEC Chair Jay Clayton, widely considered a centrist and who is reportedly not interested in continuing in the role, will likely not be reappointed as both President Donald Trump and former Vice President Joe Biden are likely to pick chairs more aligned with their political parties.

Trump Walks Away From States, Local Governments, Transit Agencies, Airports
The growing crisis of revenue shortfalls among states, local governments, transit agencies, and airports appears nearly certain to continue after President Trump called a halt to stimulus negotiations Tuesday. Trump promised passage of a stimulus package after his presumed re-election, but later in the evening offered to sign separate pieces of the larger package that the White House walked away from.

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

Fortress Delays Pricing of $3.2B Vegas Train Deal
Bloomberg Quint | Oct. 19 | Bond Finance | Infrastructure Finance

Corporate and Municipal CUSIP Request Volume Surges in September
S&P Global Market Intelligence | Oct. 17 | Bond Finance

Shawnee, KS Authorizes $24M in Bonds for Westbrooke Green Apartments
Kansas City Business Journal | Oct. 17 | Bond Finance | Community Development

Bonding Bill: What's in the $1.9B Funding Package for Central Minnesota?
St. Cloud Times | Oct. 16 | Bond Finance | Infrastructure Finance

Once-Bankrupt Detroit, MI Sells $80M of Debt for Projects
Bloomberg Law | Oct. 15 | Bond Finance | Community Development

Bon Secours Mercy Health Refinances $322M Through JEDA
SC JEDA | Oct. 13 | Bond Finance | Healthcare | Member News

New CDFA Paper Released! Reframe, Build, and Plan to Restore America's Local Food Systems
CDFA | Oct. 7 | Access to Capital | Agriculture Finance | Bond Finance | Food Systems Finance | Revolving Loan Funds (RLFs) | Tax Credits | Tax Increment Finance (TIF) | Case Studies | Case Studies | Understanding Food Systems Finance | Case Studies | Case Studies | Case Studies | Case Studies

$700M Bond Sale to Benefit North Carolina Dept. of Transportation Approved by NC Council of State
North State Journal | Oct. 6 | Bond Finance | Infrastructure Finance

Global Green Bond Issuance Surpasses $200B So Far This Year
Reuters | Oct. 5 | Bond Finance | Energy Finance | Green Finance | International | Resiliency | Green Bonds | Green Bonds

Broadband Expansion Coming to Rural West Virginia
The Intelligencer | Oct. 1 | Bond Finance | Economic Development | Infrastructure Finance

Seymour, IN Issuing $9M in Bonds to Pay for TIF Projects
The Tribune | Oct. 1 | Bond Finance | Community Development | Tax Increment Finance (TIF)

Thoughts on Regulatory and Other Reforms in 2020 and Beyond
Advisor Perspectives | Oct. 1 | Bond Finance

St. Joseph's/Candler Health System Borrows $19M JEDA Bond
SC JEDA | Sep. 23 | Bond Finance | Healthcare | Member News

Developer Shows Off Historic Rehabilitation of Greensboro's Printworks Mill
Greensboro News and Record | Sep. 21 | Bond Finance | Historic Preservation | Housing Finance | Private Activity Bonds | Low Income Housing Tax Credits (LIHTCs) | Federal Historic Rehab Tax Credits | State Historic Tax Credits

We Are Sharing Hope Uses $20M in JEDA Bonds for New Headquarters and Training Center
SC JEDA | Sep. 15 | Bond Finance | Member News | Social Finance


Highlights from the Online Resource Database

CDFA Food Finance White Paper Series: Advancing Food Systems Through Development Finance
Access to Capital | Agriculture Finance | Bond Finance | CDFA Original Research | Economic Development | Food Systems Finance | Revolving Loan Funds (RLFs) | Tax Credits | Tax Increment Finance (TIF) | Brownfield Financing | Community Development | Housing Finance | Rural Development | Social Finance
This is the sixth and final white paper in a series examining the potential creation of a food systems asset class that supports the market growth of local and regional food systems. This paper presents three replicable strategies for restoring local food systems: reframe food systems development as infrastructure and economic development; build effective relationships and partnerships across the entire food system; and plan for strategic food system financing.


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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CDFA National Sponsors

  • Alliant Insurance Services, Inc.
  • BNY Mellon
  • Bricker Graydon LLP
  • Business Oregon
  • CohnReznick
  • Frost Brown Todd LLP
  • Grow America | Formerly NDC
  • Hawes Hill and Associates LLP
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • Raza Development Fund
  • SB Friedman Development Advisors
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Z. The Bond Buyer
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