FOR IMMEDIATE RELEASE
PMA Securities Advises on North Chicago
CUSD 187’s Successful Refunding
Naperville, IL – April 30, 2019 –The Public Finance Group of PMA Securities, LLC is pleased to announce that it served as municipal advisor to North Chicago Community Unit School District Number 187 (“the District”) on the successful sale of its Series 2019A&B Refunding Bonds, which closed on April 10th. PMA demonstrated its exceptional service to clients during the bond issuance process by leading the efforts of a team that included the District, underwriter and bond and underwriter’s counsel.
PMA initially reached out to the District in November 2017 to discuss the opportunity to refund its 2010B Bonds at some point in the future, given the call date in January of 2020. While interest rates at that time were generating favorable savings to the District, PMA cautioned about the importance of understanding the impact of escrow inefficiency on the issue, given that the call date was over two years away and short-term investment rates were low. The administration and PMA continued discussions about the opportunity in the ensuing months and PMA eventually delivered a presentation at a joint meeting of the District’s Financial Oversight Panel and Independent Authority in May of 2018. PMA subsequently met with these groups a total of six times before the refunding was successfully executed last month.
Favorable bond market conditions and the shortened escrow length were significant factors that facilitated the strong pricing results, but there were several other variables at play. First, the District had worked diligently to improve its financial position in recent years, which led to removal of a negative outlook on its “BBB-” S&P credit rating in the fall of 2018. Second, under PMA’s guidance, the District delivered a comprehensive presentation to two bond insurers, which ultimately resulted in the District receiving a very aggressive bond insurance bid. Finally, through a comprehensive Request for Proposal (RFP) process led by PMA, the District selected an underwriter that outlined and implemented a very detailed investor outreach strategy.
During the bond sale on March 19th, the District achieved present value savings of $5.3 million, which was 17.4% of the principal amount of refunded bonds. “It was an honor to work with North Chicago CUSD 187 on this financing over a 16-month period and to help it achieve a fantastic result in the market,” states Tammie Beckwith Schallmo, Managing Director, Senior Vice President of PMA and lead advisor to the District. “We are grateful to the administration, Financial Oversight Panel and Independent Authority for their patience as we worked closely with bond counsel and the underwriter to develop and implement a refunding plan that would generate significant savings for the client.”
PMA has established itself as a leading municipal advisor in Illinois, Wisconsin and Minnesota by providing innovative strategies, quantitative models and exemplary service, all of which contribute to reducing borrowing costs and saving communities money. Please contact a member of the Illinois Public Finance Department to discuss PMA’s exceptional municipal advisory services and how they may benefit your District and the greater community.
Disclaimer
Securities, public finance services and institutional brokerage services are offered through PMA Securities, LLC. PMA Securities, LLC is a broker-dealer and municipal advisor registered with the SEC and MSRB, and is a member of FINRA and SIPC. Prudent Man Advisors, LLC, an SEC registered investment adviser, provides investment advisory services to local government investment pools. All other products and services are provided by PMA Financial Network, LLC. PMA Financial Network, LLC, PMA Securities, LLC and Prudent Man Advisors (collectively “PMA”) are under common ownership. Securities and public finance services offered through PMA Securities, LLC are available in CA, CO, FL, GA, IL, IN, IA, KS, MI, MN, MO, NE, OH, OK, PA, SD, TX and WI. This document is not an offer of services available in any state other than those listed above, has been prepared for informational and educational purposes and does not constitute a solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. PMA and its employees do not offer tax or legal advice. Individuals and organizations should consult with their own tax and/or legal advisors before making any tax or legal related investment decisions.
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Media Contacts:
Matt Orseske
630-657-6408
morseske@pmanetwork.com
