The City of Grand Junction and the City’s Downtown Development Authority needed to secure financing for capital improvements to the Two Rivers Convention Center and the Las Colonias Business Park. They also planned to refinance the existing Downtown Development Authority debt. As long-term clients, the City and Authority turned to Ehlers for guidance.
City officials engaged Ehlers to provide debt issuance & management services. Ehlers collaborated with the City to plan two tranches of debt to maintain bank-qualified status, thereby reducing anticipated interest costs. Ehlers leveraged a Request for Proposal process to require a structure where one tranche of debt would be sold in late 2017 and the second issuance would use a forward purchase agreement, locking in rates for a mid-2018 close.
The City received six competitive proposals, creating the opportunity to issue debt as directed in the financing plan.