City of Cleveland
$15,280,000 Taxable Economic and Community Development Revenue Bonds, Series 2015 (Core City Fund) 

  • Bond proceeds provided funds to finance recreational and public facilities, neighborhood development, roads and bridges.

  • The Bonds were rated A2/A (Moody’s/Standard & Poor’s). The issue sold on March 31, 2015 on a net designated basis with Estrada Hinojosa serving as the book-running Senior Manager. Fifth Third Securities, Inc. served as co-manager. 

  • The Bonds were structured as current interest bonds with level debt service, maturing from 12/1/2021 through 12/1/2026. Capitalized interest was assumed until 1/1/2017.

  • Estrada Hinojosa worked with the City’s financial advisors to determine a strategy for the timing of the sale and pricing of the Bonds. It was determined that the Bonds should be issued at the end of March 2015 so as to allow the Subordinate Lien Revenue Bonds adequate time to price the week ahead and for the new financing projects to begin construction in April of that year. 

  • On the day of the bond sale the market had been unchanged that morning from the previous day’s close. However, by mid-afternoon, treasuries went from being slightly positive to slightly negative.

  • One big investor, Bell Haven, had shown interest and placed $500,000 in orders for the 2021 – 2026 maturities. Another larger buyer, Fort Washington Investment Advisors Inc., placed orders for the $2,425,000 and $2,495,000 2022 and 2023 maturities, respectively. A third investor, RBC Global Asset Management, placed an order for the 2025 maturity.

    • Despite the change in the market, the City financing team decided to proceed with the sale and adjust the yields offered on the Bonds slightly upward (10 bps across the curve). Due to the difficult market conditions, the syndicate took down about $6,880,000 in unsold Bonds to support the transaction and ensure a successful pricing.





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