Fairhope Granicus #2181

City of Fairhope Seeks $80 Million Direct Loan for Water and Sewer System Improvements and Refinancing

The City of Fairhope is seeking bids from lending institutions for an $80 million direct loan to support water and sewer system improvements and refinance existing debt. - Government Buyer: - City of Fairhope (Purchasing and Finance Departments) - Purpose of Loan: - Pay off outstanding credit facility with PNC - Fund capital improvements to water works plant, distribution system, and sanitary sewer system - Cover issuance costs - Loan Structure: - General Obligation Water and Sewer Warrant (Series 2026) - Amortized over 20 years with level annual principal installments - Fixed semi-annual interest payments - Notable Requirements: - No bullet or acceleration provisions - No interest rate swaps or caps - No lender fees beyond legal fees - Optional redemption after 10 years - Limited events of default - Annual audited financial statements to be provided to lender - Bradley Arant Boult Cummings LLP as bond counsel - No OEMs or product vendors are named, as this is a financial solicitation.

Description

This solicitation is for a direct loan to the City of Fairhope in the amount of $80 million to pay off an existing credit facility, fund capital improvements to the city's water and sewer systems, and cover issuance costs. The loan will be amortized over 20 years with fixed interest payable semi-annually. The loan includes specific covenants such as no acceleration rights, no lender fees beyond legal fees, and optional redemption terms. The city will provide annual audited financial statements to the lender while the loan is outstanding.

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