INDIANAPOLIS (January 2, 2020) –Indiana State Treasurer Kelly Mitchell and the Indiana Bond Bank are pleased to announce they have closed on $64M in financing with Clay Township in Hamilton County. Thanks to the structure of the transaction, taxpayers will see no change in their taxes as a result of these projects.
Issuing through the Indiana Bond Bank allowed Clay Township to do something it could not on its own - pool its multiple projects into one bond issue, thus creating economies of scale. This simplifies the financing from an investor’s perspective, which may expand the universe of investor interest. It also allows the Township to offer larger maturity blocks which generally come at a lesser yield relative to smaller maturities.
As Mark Wuellner, Executive Director of the Indiana Bond Bank, observed, these economies of scale likely translated into significant savings for Clay Township on interest payments. “Clay Township is saving approximately $2.7M in debt service by issuing through the Indiana Bond Bank, according to underwriter estimates,” noted Wuellner. “We are proud to support Clay Township’s comprehensive vision for vibrant quality of place through strong public safety and parks.”
The $64M in bonds will be used for improvements on fifteen different projects in the township, divided between the Township park system and fire stations. For a full list of projects, click here.
"The Clay Township parks are some of the best in the country, and they are amenities not only for our residents, but also attractions for visitors from across the U.S.,” noted Doug Callahan, Clay Township Trustee. “This Indiana Bond Bank financing ensures our legacy continues, by funding improvements to walking trails, WiFi, restrooms, parking lots and park entrances.”
In addition to improvements at 7 parks, the Township will construct a new children’s pavilion at Coxhall Gardens and a new multi-use indoor fieldhouse at the Mark Badger Memorial Park.
“Our second major initiative of this program is to improve safety of Township residents by investing in our fire stations and apparatus,” commented Callahan.
Specific fire safety improvements include the expansion of the existing fiber optics ring within the Township for faster, more reliable communications between schools and the Carmel Clay Fire Department. Five fire stations will also see various interior and exterior facility renovations and equipment upgrades.
The bonds were priced on November 6th and closed on November 26th. Baird Public Finance served as underwriter, Barnes & Thornburg as bond counsel & London Witte Group as the Bond Bank municipal advisor.
More information on the Indiana Bond Bank’s programs and services at www.inbondbank.com and www.ibbinvestors.com. For more information on the Clay Township Impact Program visit http://claytownshipimpact.com.
Brian Carman, Program Development Director
Indiana Bond Bank
(317) 233-0090 or email@example.com