Government Finance

On March 26, 2024, KeyBanc Capital Markets (KBCM) and the State of Ohio successfully closed a $173.97 million Infrastructure Improvement General Obligation Bonds, Series 2024A (the Bonds) transaction. The Bonds were rated Aaa/AAA/AAA by Moody’s, S&P, and Fitch, respectively. The financing structure consisted of serial bonds maturing from March 1, 2025, through and including March 1, 2043. A 10-year par call optional redemption date of March 1, 2034, was included to provide the State with flexibility to refund the bonds for interest savings in the future. KBCM served as Senior Manager on the transaction.

The Bonds are general obligations of the State issued by the Ohio Public Facilities Commission (OPFC) to finance or assist in the financing of the cost of public infrastructure capital improvement projects of local subdivisions.

The Ohio Public Facilities Commission is a body corporate and politic constituting an agency and instrumentality of the state. It is composed of six members, being the incumbents in the elective offices of Governor, Attorney General, Auditor of State, Secretary of State, Treasurer of State, and the OBM Director. The governor serves as the chair, the Treasurer of State as the treasurer, and the Director of Budget and Management as the secretary of the Commission. The OPFC acts as the issuer of the state general obligation debt authorized by the Ohio General Assembly that is backed by the General Revenue Fund.

On March 21, 2024, KeyBanc Capital Markets (KBCM) and the Troy City School District of Ohio (the District) successfully closed a $87.83 million School Improvement Bonds, Series 2024 (General Obligation) (Unlimited Taxes) (the Bonds) transaction. The Bonds were rated Aa2 by Moody’s. The financing structure consisted of serial bonds maturing from December 1, 2024, through and including December 1, 2044, and three (3) term bonds maturing December 1 in 2049, 2054, and 2060. A 10-year par call optional redemption date of December 1, 2033, was included to provide the District with flexibility to refund the bonds for interest savings in the future. KBCM served as Sole Manager on the transaction.

The Bonds were issued for the purpose of participating in the Ohio Facilities Construction Commission Classroom Facilities Program by raising the school district’s portion of the basic project cost and locally funded initiatives not exceeding one-half of the school district’s portion of basic project cost, by constructing three new PK-4 buildings and a new 5-6 building, including technology, site improvements, furniture, equipment, demolition and abatement of certain existing structures, landscaping and utilities.

The Troy City School District encompasses approximately 37 square miles and is in Miami County, which is bounded by Shelby, Champaign, Clark, Montgomery, and Darke Counties in western Ohio. Miami County is served by State Routes 41 and 55. It is approximately 20 miles north of the City of Dayton and has access to Interstate Highway 75. The District has 4,226 students in six elementary schools, one sixth-grade school, one junior high, and one high school (nine total schools). The major sources of revenue to the District are local property taxes on real and personal property, along with State aid.

On November 30, 2023, KeyBanc Capital Markets (KBCM) successfully closed $86.26 million in Tax-Exempt Parking System Revenue Bonds, Series 2023 (the Bonds) for UAkronPark Inc., a special-purpose entity formed by the Development Finance Authority of Summit County (the Authority) with Diogenes Capital serving as the Asset Manager. The Bonds are being issued to provide funds (i) for acquiring, constructing, furnishing, equipping, maintaining, and improving real and personal property, or any combination thereof, comprising the Parking System; (ii) to finance additional costs to improve the Project and the Parking System; (iii) to fund the Debt Service Reserve Fund for the Series 2023 Bonds, (iv) to fund capitalized interest on the Series 2023 Bonds, and (v) to fund the costs of issuing the Series 2023 Bonds. KBCM served as Sole Manager on the transaction.

On October 12, 2023, KeyBanc Capital Markets (KBCM) served as Sole Manager for $27 million par amount of Idaho Housing and Finance Association Nonprofit Facilities Revenue Bonds (The College of Idaho Project) Series 2023 (the 2023 Bonds). The 2023 Bonds were issued to (i) refund the College of Idaho’s (the College) Series 2016 bank debt; (ii) finance construction and renovation costs for campus facilities; (iii) fund a debt service reserve fund; and (iv) pay costs of issuance. As Underwriter, KBCM led an extensive due diligence and rating strategy process, obtaining a first-time, “BBB” public rating for the College from Standard & Poor’s. Additionally, KBCM was able to improve the College’s security and financial covenants under the 2016 Bonds by (i) releasing the mortgage on College-owned properties; (ii) eliminating the College’s debt coverage ratio; and (iii) improving liquidity covenants. The 2023 Bonds also lowered risk in the College’s debt portfolio through termination of an existing interest rate swap, paying off its existing floating rate bank debt subject to renewal risk, and locking in a fixed rate to create cash flow certainty.

The College was founded in 1891 by William Judson Boone and built on the mantra, “Let them come, let them all come, and we will see what they can do.” Accredited by the Northwest Commission on Colleges and Universities since 1922, the College was the first institution of higher education to begin operating in the state of Idaho and has over 130 years of experience. The 55-acre campus is adjacent to the historic district of Caldwell, approximately 30 minutes from downtown Boise. Facilities include 16 academic, athletic, student life and support buildings and five residence halls, along with suite-style apartments and rental houses adjacent to campus. The College offers undergraduate liberal arts and graduate education programs.

On October 3, 2023, KeyBanc Capital Markets (KBCM) and the Central Ohio Transit Authority (the “Authority” or “COTA”) successfully closed 30 million General Obligation (Limited Tax) Capital Facilities Bonds, Series 2023 (the Bonds). The Bonds were rated AAA by S&P. The structure consisted of serial bonds maturing from December 1, 2024, through and including December 1, 2043, a term bond maturing on December 1, 2048, and another term bond maturing on December 1, 2053. A 10-year par call optional redemption date of December 1, 2033, was included to provide the COTA with flexibility in the future to refund the bonds for interest savings. KBCM served as Sole Manager on the transaction.

The proceeds from the issuance of the Bonds are being used for purchasing, acquiring, constructing, replacing, improving, extending, and enlarging transit facilities that serve or will serve an area within COTA’s boundaries.

The Central Ohio Transit provides services in and around Columbus and neighboring communities.

On July 11, 2023, the Housing Authority of the City and County of Denver, Colorado (DHA or the Authority) closed its Series 2023A and B Multifamily Housing Revenue Bonds, issued to finance its Flo Senior Apartments project. DHA issued taxable and tax-exempt bonds under a single integrated debt financing product, backed by its general revenues, in the capital markets for its 212-unit apartment building for seniors and non-elderly disabled residents. KeyBanc Capital Markets served as Sole Manager on the transaction.

DHA is a quasi-municipal corporation with a portfolio of over 13,000 units and housing choice vouchers, providing affordable housing to more than 27,000 very low, low, and middle-income individuals. DHA's mission is to serve the residents of Denver by developing, owning, and operating safe, decent, and affordable housing in a manner that promotes thriving communities. DHA has been creating vibrant communities and sustainable neighborhoods since 1938.

The Denver Housing Authority remarked on the transaction, noting ‘Key did an excellent job in underwriting and marketing the Multifamily Housing Revenue Bonds for the Housing Authority's Flo project which generated over $7 million in economic benefit to the project over a private placement financing option.’ To learn more, visit the DHA website at denverhousing.org.

On June 22, 2023, KeyBanc Capital Markets (KBCM) successfully closed on a $90.05 million Senior Secured Revolving Credit Facility in relation to the Eastern Michigan University (the University) utility concession. The funds will be used for capital expenditures and energy conservation measure projects for the utility system at the university. KBCM served as Joint Lead Arranger, Joint Bookrunner, and Administrative Agent on the transaction.

In June 2023, KeyBanc Capital Markets (KBCM) successfully closed the $85 million Senior Secured Revolving Credit Facility for Port Madison Enterprises. KBCM was selected as Sole Lender on the transaction.

About the Suquamish Tribe
The Suquamish Tribe is a federally recognized Native American Tribe on the Port Madison Indian Reservation with approximately 900 enrolled Tribal Members. Originally covering 7,657 acres on the Kitsap Peninsula, the reservation was set aside for the Tribe as part of the Point Elliot Treaty in 1855 and was expanded by an Executive Order in October 1864. The Tribe is led by a seven-member Tribal Council and the Tribal government provides for the health, safety, and welfare of their citizens.

About Port Madison Enterprises
Port Madison Enterprises (“PME”) is a wholly owned agency of the Suquamish Tribe focused on economic development. PME is one of the largest employers in Kitsap County with more than 750 employees across its enterprises. PME operates the Clearwater Casino Resort, Kiana Lodge, White Horse Golf Course, Port Madison Construction Company, Port Madison Enterprises Construction Company, and Suquamish Evergreen Corporation.