Ehlers

PRESS RELEASE

August 10, 2010

For Immediate Release

Media Contact:

Tim Schram

Ehlers

800.552.1171 ext. 8533

 

 

 

Debt Refinancing Saves City of Oshkosh Taxpayers

Over $2.6 Million

City's Aa2 Bond Rating Affirmed by

Moody's Investor's Service

 

BROOKFIELD, WI - August 10, 2010 - The City of Oshkosh Common Council has awarded the sale of $34,330,000 in General Obligation bonds and notes.  Savings to City taxpayers and utility customers of $2,611,155 were achieved by issuing $21,040,000 in bonds to refund existing City debt at lower interest rates.  The balance of $13,290,000 in bonds and notes are being issued to pay for costs of capital improvements to include street and park improvements, facility improvements, and acquisition of capital equipment.  Competitive bids for purchase of the bonds were taken by Ehlers & Associates, the City's independent financial advisor.

  

"We are very pleased with the results the City achieved in the markets today" said Mike Harrigan, Senior Financial Advisor at Ehlers. "Strong national interest in the Oshkosh name coupled with the competitive sale mechanism produced a total of twenty bids for the four series of obligations that were offered."

 

Sale results submitted to the Council by Harrigan included:

 

  • Purchase of $9,140,000 in taxable General Obligation bonds by Stifel Nicolaus & Company, Inc. at a True Interest Cost (TIC) of 4.42%.  The City has designated the bonds as "Build America Bonds" which provides for a 35% federal rebate on interest payments made, reducing the effective interest rate that will be paid to 2.89%.  Proceeds of the bonds will be used to pay the costs of street, park and facility improvements.
  • Purchase of $4,150,000 in taxable General Obligation notes by Morgan Keegan & Co., Inc. at a TIC of 2.99%.  The City has also designated the notes as "Build America Bonds" reducing the effective interest rate that will be paid to 1.98%.  Proceeds of the notes will be used to pay for acquisition of capital equipment, and other minor capital improvement projects.
  • Purchase of $12,620,000 in tax-exempt General Obligation Refunding bonds by First Southwest Company at a TIC of 2.18%, resulting in refinancing savings of $1,592,240 for City tax and rate payers.
  • Purchase of $8,420,000 in taxable General Obligation Refunding bonds by Baird at a TIC of 3.04%, resulting in refinancing savings of $1,018,915 for City tax payers.

 

As part of the debt planning and issuance process, the City's Aa2 bond rating was reviewed and affirmed by Moody's Investors Service.  "The Aa2 rating, the third highest assigned, indicates the strong credit quality of the City of Oshkosh" said Todd Taves, Financial Advisor with Ehlers. In its credit report, Moody's acknowledged the City's "stable financial operations" and its "conservative budgeting practices" as positive factors leading to the rating affirmation.

 

About the City of Oshkosh  

The City of Oshkosh (http://www.ci.oshkosh.wi.us/) is a city in Winnebago County, Wisconsin, located where the Fox River enters Lake Winnebago. The population was 62,916 at the 2000 census and had a metropolitan area of 159,972 people. The University of Wisconsin Oshkosh has been providing the residents of northeastern Wisconsin with high-quality affordable education since 1871.

 

The City is also known for being home of the Oshkosh Corporation, a Fortune 500 Company. Oshkosh Corporation is a leading manufacturer and marketer of access equipment, specialty vehicles and truck bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment and fire & emergency.

 

Oshkosh is also the location of Wittman Field, host of the annual Experimental Aircraft Association (EAA) Aviation Museum and annual AirVenture conference, America's largest gathering of aviation enthusiasts. Redevelopment is currently undergoing throughout Oshkosh.    

 

 

About Ehlers 

Ehlers, an independent public finance advisor for over 50 years, is ranked third nationally in number of competitive sales advised. Our goal is to expand public sector clients' horizons and achieve practical solutions at the lowest cost to taxpayers. Our allegiance is to the communities whom we serve. Our success is the result of established long-term relationships, hard work, and years of experience. Ehlers works with counties, cities, townships, school districts and other governmental units to build better communities through the products and service we offer: Debt Issuance Services, Economic Development and Redevelopment, Financial Planning, and Management, Communication and Public Participation. Visit http://www.ehlers-inc.com/index.php for more information.

 


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Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about general economic and market conditions, our current deal pipelines, market share gains and trends, the environment and prospects for capital markets transactions and institutional brokerage activity, anticipated financial results (including expectations regarding revenue and expense levels, the compensation ratio, return on shareholders' equity, and our quarterly run rate for non-compensation expenses), liquidity and capital resources, inventory positions, share repurchase plans or other similar matters. These statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. Ehlers undertakes no obligation to update them in light of new information or future events.