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THE INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK PLANS THE SALE OF AN ESTIMATED

$50 MILLION* BONDS, SERIES 2019F (STORMWATER PROJECT)

The Indianapolis Local Public Improvement Bond Bank (the “Bond Bank”) plans the sale of the following bonds (“Bonds”) for the Qualified Entity, the Marion County Stormwater Management District (the “District”).

Negotiated Sale scheduled for the week of September 30, 2019*

$50,000,000*  The Indianapolis Local Public Improvement Bond Bank Bonds, Series 2019F (Stormwater Project)

Proceeds of the Series 2019F Bonds will current refund the Indianapolis Local Public Improvement Bond Bank Notes, Series 2016 (Stormwater Project), outstanding in the aggregate principal amount of $50 million, and fund costs of certain additions and improvements to the District’s Stormwater System.

The Series 2019F Bonds will be secured by a pledge of net revenues of the District, which includes all revenues and income from the Stormwater System, including but not limited to charges, and user charges, but excluding revenue from ad valorem taxes, minus operation and maintenance expenses.

The Preliminary Official Statement and Investor Roadshow for the Bonds is expected to be available on September 25, 2019*. A rating presentation was given to Standard & Poor’s on September 18th, 2019 with a rating determinant forthcoming. 

Sycamore Advisors, LLC is serving as the Municipal Advisor to the Bond Bank for this issuance.

This notice does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instruments, including the Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the Bonds will be made solely by means of the final Official Statement relating to such Bonds which will describe the actual terms of such Bonds.

This notice does not constitute an obligation of the Bond Bank to issue bonds.

Prior continuing disclosure filings for the Bond Bank and the District can be accessed at the following link:

https://emma.msrb.org/IssuerHomePage/Issuer?id=48F81DF5F4D01CA5E053151ED20A6930

Indianapolis receives fifth positive financial rating from national agency

Kroll Bond Rating Agency awards highest rating to the city, citing strong local economy

INDIANAPOLIS – Today, the office of Mayor Joe Hogsett announced that Indianapolis has received yet another General Obligation rating upgrade from the Kroll Bond Rating Agency (KBRA).  This is the second upgrade the City has received from KBRA within the last year, and the fifth positive rating action taken by a national agency since October of 2018. 

KBRA cited several trends in issuing the rating, noting the City’s two years of balanced budgets, a steady increase in unassigned fund balances, and good liquidity. Additionally, the rating agency pointed to the strength of the local economy, the continued residential and commercial development, as well as the expansion of the technology sector as proof that Indianapolis’ financial position continues to demonstrate an upward trajectory.

This announcement comes as the City-County Council is debating the 2020 budget, the third balanced budget submitted to the legislative body by the Hogsett administration.  After nearly a decade of imbalanced budgets, Mayor Hogsett and City-County Councillors have prioritized responsible fiscal policies aimed at right-sizing city government and making strategic investments in critical city services.  

“Bipartisan leadership and thoughtful fiscal policies have caused national agencies to take note of Indianapolis,” said Mayor Hogsett.  “We are committed to strengthening our local economy and investing in our neighborhoods, while being good stewards of taxpayer dollars. This combination of thoughtful spending and meaningful investments are helping to attract jobs and residents, ensuring Indianapolis is on sound financial footing.”

In October of 2018, Kroll upgraded the City’s General Obligation rating to AA+ stable. In November 2018, Moody’s affirmed the City’s Aaa rating and upgraded the municipality’s financial outlook to stable. In December 2018, S&P upgraded our outlook to AA+ Stable and in February of 2019 Fitch affirmed a AAA stable rating for the city.

KBRA is a full-service credit rating agency registered within the U.S Securities and Exchange Commission.  To learn more, click here.

Taylor Schaffer
Deputy Chief of Staff - Communications
Office of Mayor Joe Hogsett – City of Indianapolis

taylor.schaffer@indy.gov

P: (317) 327-2793  C: (317) 694-0463
www.indy.gov

Market snaps up Indianapolis/Marion County justice center debt

By: Nora Colomer

**Published: March 21 2019, 6:13pm EDT **

Good timing and strong retail participation set the stage for a strong reception of Indianapolis and Marion County's $623 million of tax-exempt bonds.

The consolidated city-county government priced the deal Thursday after a retail order period Wednesday. It consists of $610 million of bonds for the long-anticipated justice center project, plus roughly $13 million of bonds to finance an assessment and intervention center. 

The finance team received $3 billion in orders, allowing it to trim yields from the initial pricing.

“The timing on this sale was impeccable in that there was really very low supply of about $3 billion and with the Federal Reserve notes coming out and saying they are not raising rates.” said Evercore Wealth Management Municipal Bond Research Director Howard Cure. “I think that really increased the institutional buyers demand at the rates they were showing. They couldn’t have timed it much better."

A 2024 maturity in the Aa1 and AAA-rated deal with a 5% coupon landed at a yield of 1.76%, or five basis points over the Municipal Market Data's top-rated benchmark. A 2044 maturity with a 5% coupon landed a yield of 2.97% or 22 basis points over MMD. A 2054 maturity with a 5% coupon landed a yield of 3.20% or 40 basis points over MMD, according to MMD's daily market close column.

Bank of America Merrill Lynch and UBS Financial Services are co-senior managers. Faegre Baker Daniels LLP is bond counsel. Sycamore Advisors LLC is the financial advisor.

Most maturities were repriced 5 to 7 basis points lower across most of the curve but the team did not reprice the 30-year and the 35-year maturities, said Diana Hamilton, president of Sycamore Advisors.

The city and county took retail orders on Wednesday with more than $218 million in orders received including $53 million from Indiana buyers. Hamilton said it was “incredibly strong” retail participation for an Indiana deal.

Hamilton said the city was pushing for retail participation.

"From the city's perspective, they wanted this deal to have local support and from a pricing standpoint, strong retail participation gives us a good anchor for the deal going into the institutional order period," Hamilton said.

"The project itself as interesting as it is about the city and county taking over what was a privatized facility, I don’t think it is coming into play very much," Cure added.

The Federal Reserve on Wednesday scaled back their projected interest-rate increases this year to zero and said they would end the drawdown of the central bank's bond holdings in September after holding policy steady.

The bonds tap a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

The $610 million, 35-year, Series A bonds that finance construction of the city-county’s adult detention facility and local courthouse are secured by lease rental payments, which are repaid with a local income tax. The deal marks the first time the city has pledged the revenue source to secure bond payments.

The $12.6 million, 20-year, Series B bonds that finance the assessment and intervention center will be secured by lease rental payments backed by a property tax. The center will be operated by the Marion County Health and Hospital Corporation.

“It is ultimately appropriation with some abatement risk but I don’t think people are concerned about that because it is pretty typical structure,” Cure said.